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Commerce · Q5

Accounting

Graduate and Post Graduate · Commerce · question 5

Q5

The debts which are to be repaid within a short period (year or less) are known as

A.
Current liabilities
Answer
B.
Fixed liabilities
C.
Contingent liabilities
D.
All of the above

Answer: Option A

Solution

Answer: Option A
Solution:
The debts which are to be repaid within a short period (year or less) are known as Current liabilities. Current liabilities are a company's debts or obligations that are due within one year or within a normal operating cycle.