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
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The correct answer is B. iv and v

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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