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?
A. i and ii B. iv and v C. iii and v D. ii and iv
Correct Answer: B
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
