Use the following information to answer the given question
(begin{array} {c|c} & D \ hline text{Cash in hand}& 1,440\ text{Cash at bank} & 2440\ text{Stock} & 2,500\ text{Furniture and fittings} & 2,200 \ text{Creditors} & 1,000end{array})
The liability is
-
A.
D7,580 -
B.
D6,580 -
C.
D5,380 -
D.
D1,000
Correct Answer: Option D
Explanation
A liability is an obligation arising from a past business event. They are obligations owed to outsiders by a business
Creditor; is a person or company to whom money is owed.
From the table above, liabilities is 1,000.