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Debts a firm must pay within a year of the balance sheet date are:
ACareful liabilities
BCapital liabilities
CCurrent liabilities
DCentral liabilities
Answer & Solution
Correct answer: C. Current liabilities
1. They fall due very soon.
2. They can strain current assets.
3. They are current liabilities.
_Source: OpenStax Introduction to Business, Chapter 14, Using Financial Information and Accounting._
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