Which of the following are included in current liabilities? I. Note payable to a supplier in 13 months. II. Amount due from a customer last week. III. Account payable to a supplier that is due next week. IV. Loan payable to the bank in 10 months.

Answer :

Answer:

The correct answers are numbers (III) and (IV): Account payable to a supplier that is due next week; Loan payable to the bank in 10 months.

Explanation:

Current Liabilities are company debts due within one year or one operating cycle, whichever is greater. An operating cycle is a time it takes the company to purchase inventory and convert it into cash from sales. Current liabilities include items such as account payable, short-term debt, and taxes payable. They are handled separately from long-term liabilities, which include long-term borrowing, bonds payable, and long term lease obligations.

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