A. Stock of raw material
B. Cash in hand
C. Bills payable
D. Cash at bank
Correct Answer: Option C
C. Bills payable
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.
