Which should be regarded as a current liability

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Problem 1: Which of the following should be regarded as a current liability?

1. Trade receivables

2. Bank overdraft

3. Trade payables

4. Drawings

A. 1 and 2

B. 2 and 3

C. 3 and 4

D. 2 and 4

Problem 2: Is it true that the trial balance totals should agree?

A. No, there are sometimes good reasons why they differ

B. Yes, except where the trial balance is extracted at the year end

C. Yes, always

D. No, because it is not a statement of financial position

Reference no: EM132691104

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