Asked by
Robert Cabrera
on Nov 14, 2024
Verified
A current liability is a debt the company reasonably expects to pay from existing current assets within
A) one year.
B) the operating cycle.
C) one year or the operating cycle whichever is longer.
D) one year or the operating cycle whichever is shorter.
Operating Cycle
The average time period between purchasing or acquiring inventory and receiving cash from sales of the inventory.
Existing Current Assets
Current assets that have been on a company's balance sheet for an extended period and include cash, accounts receivable, inventory, and other short-term assets.
- Understand the concept of current liabilities and how they are managed within a financial context.
Verified Answer
DM
Learning Objectives
- Understand the concept of current liabilities and how they are managed within a financial context.