BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following items is a current liability?
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Stock of raw materials
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Cash in hand
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Cash at bank
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Bills payable
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Explanation:
Detailed explanation-1: -Sales taxes payable. Payroll taxes payable. Income taxes payable. Interest payable.
Detailed explanation-2: -Examples of current liabilities are – bills payables, trade payable, creditors, bank overdraft, outstanding or accrued expenses, short-term loans or debentures, etc.
Detailed explanation-3: -Current liabilities are the sum of Notes Payable, Accounts Payable, Short-Term Loans, Accrued Expenses, Unearned Revenue, Current Portion of Long-Term Debts, Other Short-Term Debts.
There is 1 question to complete.