MANAGEMENT

Detailed explanation-1: -Current liabilities are an enterprise’s obligations or debts that are due within a year or within the normal functioning cycle.

Detailed explanation-2: -Current liabilities are a company’s short-term financial obligations that are due within one year or within a normal operating cycle. Current liabilities are typically settled using current assets, which are assets that are used up within one year.

Detailed explanation-3: -Current liabilities are also called “short-term liabilities.” They are debts that must be paid within the next year, including: Short-term debt, such as a line of credit.

Detailed explanation-4: -Current liabilities (also called short-term liabilities) are debts a company must pay within a normal operating cycle, usually less than 12 months (as opposed to long-term liabilities, which are payable beyond 12 months).

Detailed explanation-5: -Which of the following statements is true about current liabilities? Current liabilities are obligations payable within one year or within the firm’s operating cycle, whichever is longer.