Which of the Following Is Not a Current Liability

question 92

Multiple Choice

Which of the following is not a current liability?

• A)A liability due within one year for a business with a fifteen-month operating cycle.
• B)A liability due within three months for a business with a two-month operating cycle.
• C)A liability due within one year for a business with a nine-month operating cycle.
• D)A liability due within fifteen months for a business with a one-year operating cycle.

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Definitions:

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.

Uncollectible Receivable

A debt owed to a company that is considered unlikely to be paid by the debtor, classified as a loss.

Working Capital

Current assets minus current liabilities, representing the short-term liquidity and operational efficiency of a business.

Raw Materials

Any materials that go into the final product.