Question

Select the appropriate answer from the alternatives given below & rewrite the completed statements :

Bills payable is _____________.
a) Long term loan
b) Current liability
c) Liquid asset
d) Net loss

Answer 1

Bills payable is current liability.

Explanation: Bills payable are drawn in case of credit purchases. So, it is a liability to be paid in the near future, i.e. a short-term liability. It is generally payable within a period of 12 months, i.e. a year.