A firm’s current liabilities, at its balance sheet date, are ……….. ?
Select ONE answer:
- its bank overdrafts, if any, and any portions of its long term loans which the firm is due to repay within one year of the balance sheet date
- all liabilities which it is due to discharge within one year of that date
- any trade creditors which it is due to pay within three months of that date
- all liabilities which it incurred in the six months prior to that date
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple choice question is suitable for Accounting KS5 classes.
The answer is 3
1 – any amount payable by the firm within one year of its balance sheet date is a current liability
3 – any amount payable by the firm within one year of its balance sheet date is a current liability
4 – could have already been discharged before the balance sheet date
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