JAMB - Accounts Principles Of Accounts (2009 - No. 7)
Use the information to answer below to answer questions
i Operating machines
ii Furniture
iii Fixtures and fitting
iv Loan from friends
V Creditors
What are the current liabilities?
i Operating machines
ii Furniture
iii Fixtures and fitting
iv Loan from friends
V Creditors
What are the current liabilities?
i and ii
iv and v
iii and v
ii and iv
Explanation
Current Liabilities = Notes payable + Accounts payable + Accrued expenses + Unearned revenue + Current portion of long term debt + other short term debt.
From the question above, Loans from friends and creditors are liabilities the rest are assets
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