Use the following information to answer the question
|
$ |
|
|
Trade creditors (31/12/2020) |
4,000 |
| Paid for purchases in 2021: Cheques | 110,000 |
| Carriage inwards | 1,000 |
| Trade creditors (31/12/2021) | 6,000 |
The balance c/d on trade creditors will be recorded in the balance sheet as
current asset
short-term liability
long-term liability
fixed asset
Correct answer is B
The balance c/d on trade creditors will be recorded in the balance sheet as a "short-term liability."
Trade creditors represent amounts owed by a business to its suppliers for goods or services that have been purchased on credit. These amounts are typically expected to be paid within a short period, usually within a year. As a result, trade creditors are classified as short-term liabilities on the balance sheet.
In the given information, the trade creditors balance on December 31, 2021, is $6,000. This represents the amount that the business still owes to its suppliers at the end of the year. Since it is an amount payable in the short term, it will be recorded as a short-term liability on the balance sheet.
From the following, determine the value of the closing stock using: Feb 1 purchased 200 units @ �...
A fixed amount of money set aside for petty expenses is ...
\(\begin{array}{c|c} & N\\ \hline \text{Motor Van} & 120,000\\ \text{Buildings} & 300,00...
Subscription in advance is an example of ...
Which of following is a recurrent expenditure in public sector accounting? ...
An increase in government expenditure within a year is taken care of by means of ...