Question

Sofia bought a couch that requires a $60 down payment per month for the next eight months. Which type of liability does this describe?

A. A long-term liability.
B. A non-liquid liability.
C. A consumer reliability.
D. A current liability.

Answer 1

The situation described involves a couch for which Sofia is making monthly payments over the next eight months. Since these payments are due within one year, this type of liability is considered a short-term obligation.

Thus, the correct answer is:

**D. A current liability.**