Q44
Which of the following is a liability?
A.
Cash
B.
Equipment
C.
Debtors
D.
Creditors
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Creditors are a liability. Creditors means the persons to whom business owes money. Creditors are the persons to whom the money is payable by the business in future. So it is a liability of business towards creditors to pay them in future so it comes under current liabilities in balance sheet.