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Which of the following is a liability?

A. Cash

B. Equipment

C. Debtors

D. Creditors

Answer: Option D

Solution(By Examveda Team)

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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