Question

Which of the following would probably be classified as a current liability?

a. Bonds payable
b. Accounts receivable
c. Accounts payable
d. Accumulated depreciation

Answer 1

Current liability is a liability (debt) which is to be settled in the calendar or fiscal year.

a) Bonds don't necessarily have to be settled in the calendar or fiscal year.

b) Accounts receivable is not a liability

d) Accumulated depreciation is not a liability. It is a cost.

So the answer is c) by elimination. However, generally anything in accounts payable is estimated to be settled in the fiscal year, so this should have been the obvious answer.

Answer 2

the answer is letter c