A company’s current liabilities would be listed under which section of the balance sheet?

The correct answer is that a company’s current liabilities would be listed under the liabilities section of the balance sheet. The balance sheet is divided into three main sections: assets, liabilities, and equity.

Current liabilities are obligations that the company expects to settle within one year or one operating cycle, whichever is longer. Examples of current liabilities include accounts payable, short-term debt, and accrued expenses. Listing current liabilities in their own section allows stakeholders to clearly see what the company owes in the short term, providing insight into its liquidity and financial health.

The other sections, such as assets, represent what the company owns, and equity reflects the owners' interest in the company, which is different from liabilities. Income, typically found on the income statement, deals with revenues and expenses over a period and is not relevant to the question of where current liabilities are reported. Thus, the placement of current liabilities under the liabilities section accurately reflects their role in the financial structure of the company.