Multiple choice

Which of the following are current liabilities?

  1. Outstanding wages

  2. Redeemable preference share

  3. Share premium

  4. Provision for depreciation on machinery
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Outstanding wages represent an obligation that must be paid within the short term, making it a current liability. Share premium is part of equity, and provision for depreciation is a contra-asset.

Keep practicing — related questions