Which of the Following Is a Current Liability

question 36

Multiple Choice

Which of the following is a current liability?

• A)Preference dividends in arrears
• B)A dividend payable in the form of additional shares
• C)A cash dividend payable to preference shareholders
• D)All of these answer choices are correct.

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Definitions:

Obligor

An obligor, in a financial context, refers to the party who is legally bound, or obligated, to make a payment or fulfill a contract term to another party, the obligee.

Assignee

The person to whom contract rights are assigned.

Proper Notice

Adequate information or warning provided in advance, as required by law or agreement, to enable appropriate response or action.

Personal Services

Services provided directly to individuals based on personal skill or expertise, such as legal advice, medical treatment, or personal grooming.