Which of the following are considered current liabilities?

The correct answer is based on the definition of current liabilities in financial accounting. Current liabilities are obligations that a company expects to settle within one year or one operating cycle, whichever is longer. This means that these liabilities are due for payment within the short term and affect the company’s liquidity and working capital.

Obligations expected to be settled within one year are categorized as current liabilities because they will require the company to pay them off soon, impacting cash flow and day-to-day operations. This could include accounts payable, short-term loans, and other similar commitments.

Other options refer to long-term financial commitments. Mortgages payable and loans with a repayment period of 5 years fall into the category of long-term liabilities as they extend beyond the one-year timeframe. Long-term bonds payable also qualify as long-term liabilities since they involve borrowing funds for an extended duration, usually several years, with scheduled payments that typically extend well beyond the current year.

Thus, the best classification of a current liability from the choices provided is indeed the obligations expected to be settled within one year.