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Question

Current liabilities do not include ___________.

A
sundry creditors
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B
bank overdraft
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C
unclaimed dividend
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D
prepaid insurance
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Solution

The correct option is D prepaid insurance
Current Liabilities are those which arises due to routing business operations. These are due for payable within a short period i.e. a year or a normal business cycle. Sundry creditors, bills payable, bank overdraft ,unclaimed dividend are the example of current liabilities.
Prepaid Insurance is an item of fictitious assets.

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