Accounting Multiple Choice Question – 2 October 2024

Which ONE of the following would be classified as current liabilities in the statement of financial position of a sole trader?

Select ONE answer:

1. Owner’s capital
2. Income tax payable
3. Drawings
4. Bank overdraft

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 – Income Tax Payable does not feature on a Sole Trader’s statement of financial position

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