Accounting Multiple Choice Question – 10 December 2019

In the balance sheet of a sole trader, accruals should be shown as part of . . .

Select ONE answer:

1. fixed assets.
2. drawings.
3. current assets.
4. current liabilities.

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 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – Current liabilities are amounts payable which are due to be discharged within one year. Accruals. being amounts owing in respect of expenses are normally due to be paid within one year. Therefore, accruals should be shown as part of current liabilities.

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor View all posts by stuart001uk2014