Which of the Following Is a Characteristic of a Current

question 203

Multiple Choice

Which of the following is a characteristic of a current liability?

• A) It creates a present obligation for future payment of cash or services.
• B) It cannot be settled with services.
• C) It is an avoidable obligation.
• D) It occurs because of a future transaction or event.

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Definitions:

Sole Proprietorships

A company that is both owned and managed by one person, where there is no legal separation between the proprietor and the business itself.

Secondary Market

The marketplace for the buying and selling of pre-owned securities or financial instruments.

IBM

International Business Machines Corporation, a multinational technology company known for its computer hardware, software, and IT services.