Question: Fill in the blank: Accounts payable and income taxes are examples of _____.
- current assets
- current liabilities
- fixed assets
- COGS
Explanation
Current liabilities are obligations a company must pay within one year, such as accounts payable and income taxes. These represent short-term debts arising from operational activities. RevOps principles emphasize understanding current liabilities to manage cash flow, operational efficiency, and resource allocation. Tracking these obligations ensures the company can meet financial commitments and maintain predictable revenue operations. Proper management of liabilities supports both strategic planning and day-to-day operations.
Why the other options are incorrect
A) Current assets are short-term resources like cash or inventory, not obligations.
C) Fixed assets are long-term tangible resources, not debts.
D) COGS represents the cost of goods sold, not liabilities.
Source for verification
Balance Sheet Basics
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