Accounts payable, accruals and notes payable are listed on balance sheet as________?
Correct answer: C. Current liabilities
- A. Accrued liabilities
- B. Accumulated liabilities
- C. Current liabilities
- D. Non-current liabilities
Explanation
Accounts payable, accrued expenses and short-term notes payable are obligations normally due within the operating cycle or one year, so they appear under current liabilities. “Accrued liabilities” describes only some of these items, not the complete classification.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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