NECO Accounting 2023 Objective — Question 5

Question 5 of 50 from the National Examinations Council (NECO) Accounting 2023 Objective paper, with the correct answer and a full explanation.

The balance c/d on trade creditors will be recorded in the balance sheet as (a) current asset (b) fixed asset (c) long-term liability (d) short-term liability

A. current asset
B. fixed asset
C. long-term liability
D. short-term liabilityCorrect

Explanation

Trade creditors are amounts owed for less than a year (or the operating cycle), so they are recorded as a short-term (current) liability.

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