| N | |
| Creditors | 7,940 |
| Prepaid expenses | 290 |
| Accrual expenses | 323 |
| Stock | 4,500 |
| Cash balances | 4,956 |
| Debtors | 905 |
A. N8,553
B. N8,263
C. N7,940
D. N1,228
Correct Answer:
Option B – N8,263
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. example
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
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