Current Liabilities Include All of the Following EXCEPT

question 75

Multiple Choice

Current liabilities include all of the following EXCEPT:

• A) notes payable within the six months.
• B) payroll payable.
• C) mortgage payable.
• D) accounts payable.
• E) taxes payable.

---

Definitions:

Operating Cycle

The duration it takes for a company to purchase inventory, sell products, and collect the cash from sales, measuring the efficiency of a business's cash flow.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period of time.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a particular period.