Use the information to answer below to answer questions i Operating machines ii Furniture iii...
FINANCIAL
JAMB 2009
Use the information to answer below to answer questions
i Operating machines ii Furniture iii Fixtures and fitting iv Loan from friends V Creditors
What are the current liabilities?
- A. i and ii
- B. iv and v
- C. iii and v
- D. ii and iv
Correct Answer: 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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