Question

Which of the following does not affect the current liabilities section of the balance sheet? A. A probable legal obligation, due within 12 months B. Insurance bill to be paid next month C. Sale of goods on credit D. Purchase of inventory on credit E. Wages owing to employees but not yet paid

Answer 1

Answer:

C. Sale of goods on credit

Explanation:

The current liabilities refer to the financial obligations that a company has to pay within one year and it includes accounts payable, short term debt and wages payable. According to this, the answer is that the option that does not affect the current liabilities section of the balance sheet is sale of goods on credit.