Multiple Choice QuestionAccounts payable and short-term bank loans are examples of ______.Multiple choice question.current assetsfixed assetslong-term liabilitiescurrent liabilities
Question
Multiple Choice QuestionAccounts payable and short-term bank loans are examples of ______.Multiple choice question.current assetsfixed assetslong-term liabilitiescurrent liabilities
Solution
The answer is "current liabilities".
Step by step explanation:
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Accounts payable: This is the amount a company owes to its suppliers or vendors for goods or services received that have not yet been paid for. It is considered a short-term debt and is listed under current liabilities on a company's balance sheet.
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Short-term bank loans: These are loans from a bank that are due within one year. They are also considered a short-term debt and are listed under current liabilities on a company's balance sheet.
Therefore, both accounts payable and short-term bank loans are examples of current liabilities.
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