Which of the Following Is a Characteristic of a Current

question 36

Multiple Choice

Which of the following is a characteristic of a current liability but not a long-term liability?

• A) Unavoidable obligation.
• B) Present obligation that entails settlement by probable future transfer or use of cash, goods, or services.
• C) Liquidation is reasonably expected to require use of existing resources classified as current assets or create other current liabilities.
• D) Transaction or other event creating the liability has already occurred.