Which one of the following does not consititute a Current Liability:

The correct answer is B. Contingent liability.

A current liability is a debt or obligation that a company expects to pay within one year. Examples of current liabilities include accounts payable, notes payable, and accrued expenses.

A contingent liability is a potential liability that may arise from a past event

but is not certain to occur. Examples of contingent liabilities include lawsuits, guarantees, and environmental remediation costs.

Bills payable

are short-term debts that a company owes to its suppliers. Trade creditors are companies that have sold goods or services to a company and have not yet been paid. Interest outstanding on debentures is the interest that has accrued on a company’s debentures but has not yet been paid.

Of the above options, only contingent liability is not a current liability.