All of the Following Are Characteristics of Current Liabilities Except

question 179

Multiple Choice

All of the following are characteristics of current liabilities except:

• A) They may be replaced with a new short-term liability rather than being paid in cash.
• B) They may involve estimated amounts.
• C) They are due within one year or within the operating cycle, whichever is longer.
• D) All three of the above are characteristic of current liabilities.

---

Definitions:

Portfolio's Risk

The overall risk associated with holding a portfolio of investments, considering how the risks of the individual investments affect the portfolio as a whole.

Stand-alone Risk

Stand-alone risk refers to the risk associated with investing in a single asset or project, without considering the diversity or portfolio effects.

Risk Impacts

The potential negative consequences that uncertain events or conditions may have on an organization's ability to achieve its objectives.

Market Risk

Market risk is the potential for an investor to experience losses due to factors that affect the overall performance of the financial markets.