Debts to be repaid within a year or less are referred to as what?
Understand the Problem
The question is asking to define the type of debts that must be repaid within a year or less. This is a straightforward question about financial terminology.
Answer
Current liabilities or short-term debt.
Debts to be repaid within a year or less are referred to as current liabilities or short-term debt.
Answer for screen readers
Debts to be repaid within a year or less are referred to as current liabilities or short-term debt.
More Information
Current liabilities are a key indicator of a company's financial health, representing obligations that need to be settled in the near term.
Tips
A common mistake is confusing current liabilities with long-term liabilities, which are due in more than a year.
Sources
- Short-Term Debt (Current Liabilities): What It Is, How It Works - investopedia.com
- Solved The debts which are to be repaid within a short | Chegg.com - chegg.com
- Short-term debt - corporatefinanceinstitute.com
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