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.

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Definitions:

U.S. Department Of Labor

A federal agency responsible for ensuring safe work conditions, minimum wage enforcement, unemployment insurance benefits, and other work-related supports and regulations.

GDP Deflator

An economic measure of inflation that adjusts the gross domestic product (GDP) for changes in price levels, reflecting the real economic output.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, used as an indicator of inflation.

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.