Question:medium
Which of the following is not a current liability?
Which of the following is not a current liability?
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Liabilities = What you owe; Assets = What you own.
Short-term investments are assets, not liabilities.
Updated On: Jan 14, 2026
- Outstanding rent
- Short-term investment
- Trade creditors
- Short-term loans
Show Solution
The Correct Option is B
Solution and Explanation
Current liabilities represent obligations a company must satisfy within one year. Common examples include:
Outstanding rent: Rent payments that are due shortly.
Trade creditors: Balances owed to suppliers.
Short-term loans: Borrowings scheduled for repayment within twelve months.Conversely, short-term investments are assets, not liabilities. These are readily convertible assets expected to be exchanged for cash within one year and are classified as current assets.Therefore, (B) Short-term investment is definitively not a current liability.
Outstanding rent: Rent payments that are due shortly.
Trade creditors: Balances owed to suppliers.
Short-term loans: Borrowings scheduled for repayment within twelve months.Conversely, short-term investments are assets, not liabilities. These are readily convertible assets expected to be exchanged for cash within one year and are classified as current assets.Therefore, (B) Short-term investment is definitively not a current liability.
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