Question on: WAEC Accounting - 2016
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
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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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