alleryA supplier's bill falling due in ninety days appears on the balance sheet as a:
ACurrent liability
BCurrent insurance
CCurrent inventory
DCurrent investment
Answer & Solution
Correct answer: A. Current liability
1. Liabilities are split by when they must be settled.
2. Ninety days is comfortably inside one year.
3. The bill is a current liability.
_Source: OpenStax Principles of Financial Accounting, Chapter 2, Introduction to Financial Statements._
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