Current Liabilities

question 135

Multiple Choice

Current Liabilities

• A) Are listed in order of liquidity
• B) Are closed at the end of the accounting period to current assets
• C) Are due to be settled within the shorter of one year or the operating cycle
• D) Are listed in the order in which they are to be paid, with the first one listed to be paid first
• E) Are due to be settled after one year or the operating cycle

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Definitions:

Collection Float

The time period between when a check is deposited into a bank account and when the amount is made available.

Cheques

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or a specified person.

Deposits

Funds placed into an account at a banking institution for safekeeping, which can include money market accounts, savings accounts, and certificates of deposit.

Outstanding

Refers to shares that are currently held by investors, including both public shareholders and restricted company shares.