- 1 Marks
Question
Which of the following is NOT a liability?
A. Accrued wages
B. Trade payables
C. Prepayments
D. Insurance due but unpaid
E. Rent received in advance
Answer
C
Explanation:
Option C is correct because prepayments represent an asset (an advance payment) rather than a liability.
- Tags: Accounting, Financial Statements, Liabilities
- Level: Level 1
- Topic: Financial Analysis
- Series: NOV 2022
- Uploader: Theophilus