Question

Current liabilities are obligations that are reasonably expected to be paid from Existing Creation of Other Current Assets Current Liabilities a. No No b. Yes Yes c. Yes No d. No Yes

Answer 1

Answer:

The answer is option C) Yes No

Explanation:

Current liabilities are obligations that are reasonably expected to be paid from Existing Creation of Other Current Assets and not current liabilities.

This is because, Current liabilities are short term liabilities due within a year. They include accounts payable, short term debt and overdraft. This means that payment can only be generated by current assets.

Current assets are also short term assets with a life span of on year. They include accounts receivable an cash.

Therefore, Yes, Current liabilities are obligations that are reasonably expected to be paid from Existing Creation of Other Current Assets.

And No, Current liabilities are obligations that are not expected to be paid from Existing Creation of Other Current Liabilities.