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WAEC Financial Accounting 1998 Question 21

Question 21

Final Accounts of a Sole Trader

Accounts payable is

  1. A.an accrual
  2. B.a provision
  3. C.a current liability
  4. D.a long-term liability
  5. E.a current asset.
Show the answer and explanation

Answer: C (a current liability)

Explanation

Accounts payable (trade creditors) are amounts owed to suppliers within a year, a current liability.