WAEC Financial Accounting 2005 Question 48

Question 48

Accruals and Prepayments

Resources consumed but to be paid for within the next accounting period are classified in the balance sheet as

  1. A.current liabilities
  2. B.current assets
  3. C.long-term liabilities
  4. D.capital.
Show the answer and explanation

Answer: A (current liabilities)

Explanation

Expenses owing are accruals, current liabilities.