In the Triad data, which item is a current liability?

In the Triad data, which item is a current liability?

• A. Accounts payable
• B. Mortgage
• C. Revenue
• D. A/R

Answer: (A)

Current liabilities are obligations the company expects to settle within one year. Accounts payable fits this category because it represents amounts owed to suppliers for goods or services that are typically due in the near term. A mortgage is usually a long-term debt (with only the portion due within a year potentially current), revenue is income and not a liability, and accounts receivable is an asset (money owed to the company). Therefore, the item in Triad data that is a current liability is accounts payable.

Current liabilities are obligations the company expects to settle within one year. Accounts payable fits this category because it represents amounts owed to suppliers for goods or services that are typically due in the near term. A mortgage is usually a long-term debt (with only the portion due within a year potentially current), revenue is income and not a liability, and accounts receivable is an asset (money owed to the company). Therefore, the item in Triad data that is a current liability is accounts payable.