Question Details

Current liabilities are expected to be paid within one year 



True oe false:
1.	A current liability must be paid out of current earnings. 

	2.	Current liabilities are expected to be paid within one year or the operating cycle, whichever is longer. 
	3.	The relationship between current liabilities and current assets is important in evaluating a company's ability to pay off its long-term debt. 
	4.	A company whose current liabilities exceed its current assets may have a liquidity problem. 
	5.	A debt due within 6 months of the statement of financial position date which is expected to be paid out of cash will be classified as a current liability. 




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