Use the following information to answer the given question \(\begin{array} {c|c} & D \\ \hline \text{Cash in hand}& 1,440\\ \text{Cash at bank} & 2440\\ \text{Stock} & 2,500\\ \text{Furniture and fittings} & 2,200 \\ \text{Creditors} & 1,000\end{array}\) The liability is
A. D7,580 B. D6,580 C. D5,380 D. D1,000
Correct Answer: D
Explanation
A liability is an obligation arising from a past business event. They are obligations owed to outsiders by a business Creditor; is a person or company to whom money is owed. From the table above, liabilities is 1,000.
