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UI Post-UTME Financial Accounting 2024 (Model questions) Question 4

Question 4

Final Accounts of a Sole Trader

Which of the following is a long term liability

  1. A.bank overdraft
  2. B.bank deposit
  3. C.good will
  4. D.debentures
Show the answer and explanation

Answer: D (debentures)

Explanation

Debentures are long-term loans; an overdraft is current, and deposits and goodwill are assets.