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Today, 16:32

Which of the following is a current liability?

a. A long-term debt maturing currently, which is to be paid with cash in a sinking fund.

b. A long-term debt maturing currently, which is to be retired with proceeds from a new debt issue.

c. A long-term debt maturing currently, which is to be converted into common stock.

d. None of these answers are correct.

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  1. Today, 18:01
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    D) None of these answers are correct

    Explanation:

    None of the answers are correct because the definiton of current liability is a debt or obligation that has to paid off before the fiscal year ends. In other words, current liabilities are by definition short-term obligations, and all the options in the question refer to long-term obligations.
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