Which of the following items is a current liability?

Arrears of wages

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Provision for machinery depreciation

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Solution

The correct option is A Arrears of wages
Out standing expenses are those against which services are already taken but the payment is not done. Outstanding expenses are to be paid within a short period hence are considered as current liabilities.

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Which of the following items is a current liability?

The correct option is A Arrears of wagesOut standing expenses are those against which services are already taken but the payment is not done. Outstanding expenses are to be paid within a short period hence are considered as current liabilities.

The correct option is A Arrears of wages
Out standing expenses are those against which services are already taken but the payment is not done. Outstanding expenses are to be paid within a short period hence are considered as current liabilities.