Multiple Choice Question_____ liabilities must be repaid within one year.Multiple choice question.Long-termRetailedFixedCurrent

Break Down the Problem

1. Identify the types of liabilities presented in the options.
2. Determine which type of liability is characterized by a repayment period of one year or less.

Relevant Concepts

• Current Liabilities: Obligations that a company is required to pay within one year.
• Long-term Liabilities: Obligations due beyond one year.
• Retained Earnings: Not a liability; rather, it represents the cumulative profits reinvested in the business.
• Fixed Assets: Tangible long-term assets, not related to liabilities.

Analysis and Detail

• Current Liabilities are obligations that are due to be paid within the next year, such as accounts payable, short-term loans, and other similar debts.

Verify and Summarize

Based on the definitions:

1. Long-term liabilities are due after one year.
2. Retained earnings refer to equity, not a liability.
3. Fixed assets are long-term and are not liabilities.

Final Answer

The correct answer is Current.