Question

Current liabilities include

• A. Sundry creditors
• B. Outstanding expenses
• C. Bills payable
• D. All of these

Hint:

Each item listed is a short-term obligation, so together they are all current liabilities.

Answer 1

The Correct Option is D

Step 1: Recall the definition of current liabilities:
Current liabilities are obligations expected to be settled within one year (or one operating cycle) of the balance sheet date.

Step 2: Check each listed item against this definition:
Sundry creditors (amounts owed to suppliers), outstanding expenses (expenses incurred but not yet paid), and bills payable (short-term promissory obligations) are all settled in the short term, so each independently qualifies.

Final Answer:
All three — sundry creditors, outstanding expenses, and bills payable — are current liabilities.