Accounting for IGCSE & O level - Final Statements (Section 9 - No. 15)
Which of the following is a characteristic of a current liability?
Expected to be paid within one year or the operating cycle.
Used to fund long-term investments.
Represents obligations to suppliers.
Always includes long-term debt.
Explication
Current liabilities are short-term obligations. Accounts payable, salaries payable, and the current portion of long-term debt are examples.