Obligations to be paid within one year or the company's operating cycle,whichever is longer,are:

A) Current assets.
B) Current liabilities.
C) Earned revenues.
D) Operating cycle liabilities.
E) Bills.

Question

Obligations to be paid within one year or the company's operating cycle,whichever is longer,are:A) Current assets.B) Current liabilities.C) Earned revenues.D) Operating cycle liabilities.E) Bills.

Diogo Pineda · Accepted Answer

Final Answer : B, Explanation :  Obligations to be paid within one year or the company's operating cycle, whichever is longer, are considered current liabilities. This includes items such as accounts payable, short-term loans, and accrued expenses. Current assets, on the other hand, are assets that are expected to be converted to cash within one year or the operating cycle, whichever is longer. Earned revenues are not obligations to be paid, but are revenues that have been earned but not yet received. Operating cycle liabilities and bills are not standard accounting terms.

Obligations to be paid within one year or the company's operating cycle,whichever is longer,are:

A) Current assets.
B) Current liabilities.
C) Earned revenues.
D) Operating cycle liabilities.
E) Bills.

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