Debts that must be paid within a year.

• A. Current Liabilities
• B. Maker
• C. Corporation
• D. Transaction

Answer: (A)

Debts that must be paid within a year are current liabilities. This classification on the financial statements signals short-term obligations due within roughly 12 months, helping assess liquidity and the company’s ability to meet its near-term debts. Examples include accounts payable and short-term borrowings, which must be settled soon. The term “maker” refers to who signs a promissory note, not the timing of payment; “corporation” is a business form; and “transaction” means any event affecting finances, not the maturity period. So the concept being tested is the time-based categorization of liabilities, and the correct term is current liabilities.