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WAEC Financial Accounting 2017 Question 14

Question 14

Final Accounts of a Sole Trader

Accounts payable is classified as a

  1. A.prepayment.
  2. B.provision.
  3. C.current liability.
  4. D.long-term liability.
Show the answer and explanation

Answer: C (current liability.)

Explanation

Accounts payable (trade creditors) are due within a year, so they are a current liability.