Quiz 22

Current Liabilities
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13 MCQs with the right answers
Helps with practice
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Q1. Current liabilities are shown in _____.*

1 mark

footnotes

profit & loss account

trading account

balance sheet

Q2. Part of long-term loan which is payable within the current year becomes a current liability.*

1 mark

False

True

Q3. Paying trade payables increases the current liabilities of a business.*

1 mark

True

False

Q4. Working capital increases with rise in current liabilities.*

1 mark

False

True

Q5. Current liabilities = _____, if Bank Overdraft = 5,000, Debentures = 3,000, Accounts Payable = 2,000.*

1 mark

6000

8000

7000

3000

Q6. Wages payable is a current liability.*

1 mark

True

False

Q7. Bank overdraft is a current liability.*

1 mark

False

True

Q8. Which of these is a current liability?*

1 mark

Prepaid Expense

Equity Shares

Bonds Payable

Interest Payable

Q9. Which of the following is not a current liability?*

1 mark

Prepaid Expense

Outstanding Expenses

Debentures

Creditors

Q10. _____ is a current liability.*

1 mark

Bills Receivable

Accounts Payable

Bonds Payable

Accounts Receivable

Q11. Companies mostly utilize _____ to pay off current liabilities.*

1 mark

fictitious assets

investments

fixed assets

current assets

Q12. Mostly, current liabilities are _____ obligations.*

1 mark

immediate

short-term

indefinite

long-term

Q13. Current liabilities are obligations of a company which are payable _____.*

1 mark

immediately

within a year

within a quarter

within a month

Quiz 22 – Current Liabilities

Quiz 22

Connect & Improve AccountingOptional

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