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Which of the following is a liability

This question belongs to Commerce Accounting
Accounting
?

Which of the following is a liability?

Answer & Solution
Correct Answer: Option D
Creditors are a liability. Creditors means the persons to whom business owes money. Creditors are the persons to whom the money is payable by the business in future. So it is a liability of business towards creditors to pay them in future so it comes under current liabilities in balance sheet.
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