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What is Current Liability?

13. What is Current Liability?

1. Assets of a company that are expected to be sold or used as a result of standard business operations over the next year.
2. A potential liability that may occur in the future.
3. Company's short-term financial obligations that are due within one year or within a normal operating cycle.
4. Obligations listed on the balance sheet not due for more than a year.

Answer: C) Company's short-term financial obligations that are due within one year or within a normal operating cycle

Explanation:

Current liabilities are a company's short-term financial obligations that are due within one year or within a normal operating cycle.