Current Liabilities Are Debts That Are Expected to Be Satisfied

question 39

Multiple Choice

Current liabilities are debts that are expected to be satisfied within

• A)one year or the normal operating cycle,whichever is shorter.
• B)one year or the normal operating cycle,whichever is longer.
• C)one year.
• D)the normal operating cycle.

---

Definitions:

Selling And Administrative Expenses

Operating expenses related to selling products and managing the business, not directly tied to production.

Payout Ratio

The ratio of income distributed to shareholders in the form of dividends, usually represented as a percent.

Dividend Payout Ratio

The percentage of earnings paid to shareholders in dividends, indicating how much money a company returns to shareholders vs. retaining.