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 and ii
-
iv and v
- iii and v
- ii and iv
The correct answer is: 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