Which of the Following Are Included in Current Liabilities

question 72

Multiple Choice

Which of the following are included in current liabilities?
I.note payable to a supplier in eight months
II.amount due from a customer next month
III.account payable to a supplier that is due next week
IV.loan payable to the bank in fourteen months

• A)I and III only
• B)II and III only
• C)I, II, and III only
• D)I, III, and IV only
• E)I, II, III, and IV

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Definitions:

Debt-to-Equity Ratio

A financial ratio used to measure the relative proportion of shareholders' equity and debt used to finance a company's assets.

Times Interest Earned

A metric indicating a firm's capability to cover its debt payments, by contrasting its earnings before interest and taxes with its interest costs.

Interest Expense

The cost incurred by an entity for borrowed funds, representing the interest payments made on any borrowed capital.

Tax Rate

is the percentage at which an individual or corporation is taxed by the government.