Which of the Following Are Included in Current Liabilities

question 61

Multiple Choice

Which of the following are included in current liabilities?
I.note payable to a supplier in eighteen months
II.debt payable to a mortgage company in nine months
III.accounts payable to suppliers
IV.loan payable to the bank in fourteen months

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

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operational costs, from its total revenue.

Adjusting Journal Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Insurance Expense

The cost attributed to procuring insurance for business operations, properties, liability, and other risk management purposes, treated as an expense on the income statement.

Prepaid Insurance

An asset account representing insurance payments made in advance for coverage that extends to future periods.