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Which statement best explains Current liability?

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Question ID #25902 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Which statement best explains Current liability?

Correct Answer: C. Obligation expected to be settled within the operating cycle or specified short period
Current liability: Obligation expected to be settled within the operating cycle or specified short period

Question: Which statement best explains Current liability?

A. Current assets minus current liabilities

B. Assets = Liabilities + Equity

C. Obligation expected to be settled within the operating cycle or specified short period

D. Payment made in advance for a future accounting period

Correct Answer: C. Obligation expected to be settled within the operating cycle or specified short periodCurrent liability: Obligation expected to be settled within the operating cycle or specified short period

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Which statement best explains Current liability? - MCQ Explanation

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Correct answer: C. Obligation expected to be settled within the operating cycle or specified short period