Multiple Choice Question If a company is to be able to pay its debts in the next year, then its current assets should be _ less than O greater than 68 concepts completed (i) Ord current liabilities.

To determine whether a company can pay its debts in the next year, we look at the relationship between **current assets** and **current liabilities**. - **Current Assets**: These are assets that can be converted into cash within one year, such as cash, accounts receivable, and inventory. - **Current Liabilities**: These are obligations the company needs to pay within one year, such as accounts payable, short-term debt, and other similar debts. **Key Principle:** For a company to be able to pay its debts in the next year, **current assets should be greater than current liabilities**. This ensures that the company has enough short-term assets to cover its short-term obligations. **Answer Choices:** A) Less than current liabilities B) Greater than current liabilities C) Equal to current liabilities D) None of the above **Correct Answer:** **B) Greater than current liabilities** This means that the company's current assets exceed its current liabilities, providing a buffer to cover upcoming debts.