Which one of the following is an example of a current liability?

Current liabilities are obligations that a business needs to settle within one year or within its operating cycle, whichever is longer. Accruals refer to expenses that have been incurred but not yet paid, such as wages or taxes that are owed. This makes them a classic example of a current liability because they represent amounts that the company is obligated to pay in the near term.

On the other hand, mortgages and bank loans are typically classified as long-term liabilities if they are not due within the current accounting period. Fixed assets, such as property and equipment, are part of the long-term assets category and are not liabilities at all, as they represent resources owned by the business. Thus, accruals distinctly fit the definition of current liabilities, highlighting their role in representing short-term financial obligations on a business's balance sheet.