A Current Liability Is a Debt the Company Reasonably Expects

question 111

Multiple Choice

A current liability is a debt the company reasonably expects to pay from existing current assets within

• A) one year.
• B) the operating cycle.
• C) one year or the operating cycle whichever is longer.
• D) one year or the operating cycle whichever is shorter.

---

Definitions:

Bid-ask Spread

The difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask) for an asset.

Market Maker

A firm or individual who actively quotes two-sided markets, providing bids and offers along with the market size of each.

Profit Maximizing

The process of making business decisions that result in the highest possible profit, by adjusting production levels, prices, and other variables.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in market balance.