Milora, a Clothing Company, Purchases 50 Sewing Machines from a Company

Multiple Choice

Milora, a clothing company, purchases 50 sewing machines from a company called Quick Sew on credit. Milora is supposed to pay an amount of $76,000 to Quick Sew. This amount is due within a year of the date on the balance sheet. In this scenario, the amount of credit that Milora owes Quick Sew is referred to as Milora's _____.

A) current liability
B) borrowing base
C) charge-off
D) intangible asset