Which of the following items is a current liability?
The correct answer is C. Bills payable
Current liabilities are amounts due to be paid to creditors within twelve months.
The following are common examples of current liabilities:
Accounts payable. These are the trade payables due to suppliers, usually as evidenced by supplier invoices.
Sales taxes payable.
Payroll taxes payable.
Income taxes payable.
Interest payable.
Bank account overdrafts.
Accrued expenses.
Customer deposits.
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