Bills payable is _________.

Question

Select the appropriate answer from the alternatives given below & rewrite the completed statement

Bills payable is _________.

Options

• Long term loan
• Current liability
• Liquid asset
• 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.