Which of the Following Is the Best Definition of a Current

question 123

Multiple Choice

Which of the following is the best definition of a current liability?

• A) An obligation payable within one year.
• B) An obligation payable within one year of the balance sheet date.
• C) An obligation payable within one year or within the normal operating cycle, whichever is longer.
• D) An obligation expected to be satisfied with current assets or by the creation of other current liabilities.

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Definitions:

Labor-Intensive

A process or industry that requires a high input of labor relative to capital in the production of goods or services.

Labor Costs

The total expenses incurred by employing labor including wages, salaries, benefits, and taxes, which are key components of the overall cost of production.

Minimum Wage

The lowest legal wage that employers are allowed to pay their workers, designed to protect labourers from exploitation.

Mom And Pop

Small, family-owned, and operated businesses, typically offering personalized service.