Question

A current liability is a debt that is reasonably expected to be paid a. out of cash currently on hand b. within one year c. out of currently recognized revenues d. between 6 months and 18 months

Answer 1

Answer: within one year

Explanation:

Current liabilities are the liabilities that are incurred by a firm and must be settled within a year.

Typically, the current liabilities are settled by using the current assets. Examples of current liabilities are the accounts payable, noted payable, dividends and the short-term debt.