Current liabilities are typically paid from current assets or [...]
Answer
by incurring new short-term liabilities.
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Subject 2. Measurement Bases of Assets and Liabilities whichever is longer. Typical examples are pre-paid rent, advertising, taxes, insurance policies, and office or operating supplies. They are reported at the amount of un-expired or unconsumed cost.
Current Liabilities
<span>Current liabilities are typically paid from current assets or by incurring new short-term liabilities. They are not reported in any consistent order. A typical order is: accounts payable, notes payable, accrued items (e.g., accrued warranty costs, compensation and benefits), income taxes
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