A-LevelAccountingPreparation of financial statements9706/12 · May/June 2014 · Q171 Mark

A business has settled a legal dispute with a customer and expects to pay him $10000 before the end of the next financial year. Which heading is this amount included under in the company's statement of financial position for this financial year?

Acapital and reserves

Bcurrent liabilities

Cnon-current assets

Dnon-current liabilities

✓ Correct answer

B: current liabilities

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2014 Paper 1 Variant 2, question 17.

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