Accounting Multiple Choice Question – 8 February 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Accounting

A firm’s current liabilities, at its balance sheet date, are ……….. ?

Select ONE answer:

  1. 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
  2. all liabilities which it is due to discharge within one year of that date
  3. any trade creditors which it is due to pay within three months of that date
  4. 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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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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