Question

Which of the following is not a current liability?

• A. Outstanding rent
• B. Short-term investment
• C. Trade creditors
• D. Short-term loans

Hint:

Liabilities = What you owe; Assets = What you own. Short-term investments are assets, not liabilities.

Answer 1

The Correct Option is B

Current liabilities are obligations a company needs to settle within one year. They typically include:
Outstanding rent: Money owed for rent, payable soon (Current liability).
Trade creditors: Amounts payable to suppliers (Current liability).
Short-term loans: Loans due within a year (Current liability). Short-term investments, however, are assets, not liabilities. They represent liquid assets that can be converted into cash within a year and are recorded under current assets. Hence, (B) Short-term investment is not a current liability.