Debts which are payable in the course of a month are called _____________?
Correct answer: C. Current liabilities
- A. External liabilities
- B. Fixed liabilities
- C. Current liabilities
- D. Liquid Liabilities
Explanation
Amounts payable within the normal short-term operating period, such as within a month, are current liabilities. Fixed liabilities are generally payable over a longer period.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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