Which of the Following May Be a Current Liability

question 90

Multiple Choice

Which of the following may be a current liability?

• A) Withheld Income Taxes
• B) Deposits Received from Customers
• C) Deferred Revenue
• D) All of these answers are correct.

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Definitions:

Stakeholder

An individual or group that has an interest in any decision or activity of an organization, including employees, customers, and investors.

Corporation

A legal entity that is separate and distinct from its owners, providing limited liability to its shareholders.

Suppliers

Suppliers are businesses or individuals that provide products or services to other businesses or consumers, typically as part of a supply chain.

Agency Problem

In corporations, managers are the agents of stockholders and are often able to take advantage of the relationship by diverting corporate resources to their own use. Excessive pay is the primary example. The general situation is described as the agency problem. Costs associated with controlling the agency problem are agency costs.