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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
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Solution
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.
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