Question

Which group contains only liabilities? Select one: a. Bank overdraft, trade payables, unpaid wages b. Trade payables, cash at bank, unpaid rates c. Trade payables, inventory, unpaid wages d. Bank loan, trade payables, prepaid rent

Answer 1

Group A contains only liabilities.

An enterprise having a bank overdraft means they owe money to the bank.

An enterprise having trade payables means they owe money to a supplier or vendor.

An enterprise having unpaid wages means they owe money to their staff.