Which of the Following Is a Characteristic of a Current

question 17

Multiple Choice

Which of the following is a characteristic of a current liability?

• A)A current liability is a liability that is due within 10 days.
• B)A current liability is a liability that is due within 30 days.
• C)A current liability is a liability that is due within one year or one operating cycle, whichever is longer.
• D)A current liability is a liability that is due in longer than a one- year period, or one operating cycle.

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Definitions:

Investment Account

An account held at a financial institution that is used for the purpose of investing in securities such as stocks, bonds, mutual funds, and other investment vehicles.

Unrealised Profit

Profit that has been recorded on paper due to accounting entries but has not yet been realized through actual cash transactions.

Inventory Write-down

A reduction in the book value of inventory that reflects a decrease in the market value of the items or their usability.