| N | |
| Creditors | 7,940 |
| Prepaid expenses | 290 |
| Accrual expenses | 323 |
| Stock | 4,500 |
| Cash balances | 4,956 |
| Debtors | 905 |
Use the information in the above table to answer the question.
Determine the current liabilities.
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Correct Answer: Option B
Explanation:
In accounting, current liabilities are often understood as all liabilities of the business that are to be settled in cash within the fiscal year or the operating cycle of a given firm, whichever period is longer. exampleÂ
Accounts payable.
Salaries payable.
Short-term debt payable.
Short-term notes payable.
Current lease liability
From the table above, current liabilities = creditors + accruals expenses. Hence we have;
7,940+323= 8,263
In accounting, current liabilities are often understood as all liabilities of the business that are to be settled in cash within the fiscal year or the operating cycle of a given firm, whichever period is longer. exampleÂ
Accounts payable.
Salaries payable.
Short-term debt payable.
Short-term notes payable.
Current lease liability
From the table above, current liabilities = creditors + accruals expenses. Hence we have;
7,940+323= 8,263