Accounting JAMB

What are the current liabilities?

Use the information to answer the question below

i Operating machines
ii Furniture
iii Fixtures and fitting
iv Loan from friends
V Creditors

 

A. i and ii
B. iv and v
C. iii and v
D. ii and iv

Correct Answer:

Option B – iv and v

Explanation

Current Liabilities = Notes payable + Accounts payable + Accrued expenses + Unearned revenue + Current portion of long term debt + other short term debt.

From the question above, Loans from friends and creditors are liabilities the rest are assets

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