Q. Which of the following is the best definition of a current liability?
A. An obligation payable within one year
B. An obligation payable within one year of the balance sheet date.
C. An obligation payable within one year or within the normal operating cycle, whichever is longer.
D. An obligation expected to be satisfied with current assets or by the creation of other current liabilities.
Answer: An obligation expected to be satisfied with current assets or by the creation of other current liabilities.
