Which of These Is Not a Current Liability

question 13

Multiple Choice

Which of these is not a current liability?

• A) Dividend payable.
• B) Accounts payable.
• C) General reserve.
• D) Accrued expenses.

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Definitions:

Expense

A cost incurred in running a business by consuming goods or services in producing revenue. A subdivision of owner’s equity.

Liability

Financial debts or obligations that arise during the course of business operations, needing to be settled over time.

Bond Interest Expense

Represents the cost incurred by an entity for borrowing funds through the issuance of bonds, calculated as the bond's face value multiplied by the interest rate.

Issued At

Refers to the price or condition under which securities, such as bonds or stocks, are made available for sale when they first come to market.