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Which of the following items is a current liability?

Which of the following items is a current liability?
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Stock of raw material
  • B Cash in hand
  • C Bills payable
  • D Cash at bank
Correct Answer: Option C
Explanation:
Current liabilities are amounts due to be paid to creditors within twelve months.
The following are common examples of current liabilities:

Accounts payable. These are the trade payables due to suppliers, usually as evidenced by supplier invoices.
Sales taxes payable.
Payroll taxes payable.
Income taxes payable.
Interest payable.
Bank account overdrafts.
Accrued expenses.
Customer deposits.

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