Which one of the following would be classified as a current liability in a building company with a financial year end date of 30 September 2019?
A) A loan used to acquire the building firm's head office. This loan is repayable in full on 30 June 2028.
B) A trade receivable from a customer for work completed during the year.
C) An amount owed to a brick manufacturer for bricks supplied during September 2019.
D) The share capital of the company.

Question

Quizplus · Accepted Answer

An amount owed to a supplier for goods received, such as bricks supplied in September 2019, is a current liability as it is expected to be settled within the company's operating cycle or within 12 months.

Which One of the Following Would Be Classified as a Current