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Sagot :
The correct option is b) Will be paid in less than one year. Debts that must be repaid by a corporation within a year are known as current liabilities. They are frequently compensated with existing assets. On a balance sheet, current obligations are located on the right side.
All liabilities of the company that must be paid in cash within the fiscal year or the operating cycle of a specific company, whichever is longer, are often recognized to be current liabilities. Current liabilities are defined as debts that will be settled by current assets or by the development of new current liabilities, which is a more comprehensive definition. Accounts payable are due and paid within 30 days, but they frequently take longer than 30 or 60 days in specific circumstances. Accounts payable is a topic that is related to the laws on late payments and claims for unpaid accounts payable. An organization's operational cycle is the typical amount of time needed to produce revenues from cash to cash. [Reference needed] Current liabilities include, for instance, accounts payable for goods, services, or supplies that were purchased for use in the operation of the firm and payable within a typical period. Accounts payable amounts represent all of a company's bills that are due to vendors, whether they are more than 30 days old or less than 31 days old. As a result, the balance sheet for accounts payable does not indicate late payments. The age of accounts payable may be mentioned in footnotes in the audited financial statements, but this is not standard accounting procedure.
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