Current liabilities include: A. Accounts receivable B. Unearned revenues. C. Portion of long-term debt that will...

Current liabilities include:

A.	Accounts receivable
	B.	Unearned revenues.
	C.	Portion of long-term debt that will be paid with noncurrent assets
	D.	All of these
	E.	None of these.

Solutions

Expert Solution

B. Unearned revenues

Working:

Current Liabilities are the obiligation of organisation that is payable within 12 months as on the date of Balance Sheet.

A. Accounts Receivable

Accounts Receivable is the part of current Assets. When company makes any sales on credit the amount upon such credit sales is collectible within 12 months from the date of Balance Sheet.

B. Unearned Revenue

Amount received in advance for the selling of goods or providing services in future is known as Unearned Revenue. As it's name suggests it is revenue that is not earned.Because entity has collected consideration for goods or Services and so it has now an obilgation to make available goods or Services. Goods or Services must be made available within 12 months from the date of Balance sheet. So, it is cosidered as Current Liability.

C. Long term Debt

Nature of Fund through which Long term Debt will be settled does not alter it;s nature.So, it will remain considered as Long term Debt instead of current Liabilities.

ekkarill92 answered 7 months ago

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