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Which of the following items is a current liabi... - WAEC Accounting 2016 Question

Which of the following items is a current liability?

A
Stock of raw material
B
Cash in hand
C
Bills payable
D
Cash at bank
correct option: c

Current liabilities are amounts due to be paid to creditors within twelve months. 

The following are common examples of current liabilities:

  • Accounts payable. These are the trade payables due to suppliers, usually as evidenced by supplier invoices.
  • Sales taxes payable. 
  • Payroll taxes payable.
  • Income taxes payable.
  • Interest payable.
  • Bank account overdrafts.
  • Accrued expenses. 
  • Customer deposits.
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