Question

In accounting, which financial elements are typically included in the current liabilities section of a balance sheet?

a) Accrued Sundry Expenses, Trade Payables, Bank Overdraft, Value Added Tax
b) Fixed Assets, Equity, Long-Term Loans, Retained Earnings
c) Revenue, Accounts Receivable, Short-Term Investments, Depreciation
d) Gross Profit, Net Income, Dividends, Common Stock

Answer 1

In accounting, the financial elements typically included in the current liabilities section of a balance sheet are Accrued Sundry Expenses, Trade Payables, Bank Overdraft, and Value Added Tax.

Step-by-step explanation:

In accounting, the current liabilities section of a balance sheet includes financial obligations that a company is expected to pay within one year. The correct answer to which financial elements are typically included in the current liabilities section is: a) Accrued Sundry Expenses, Trade Payables, Bank Overdraft, Value Added Tax.

Current liabilities are composed of short-term financial obligations such as debts and other liabilities due within a year. Examples of these liabilities include accounts payable like trade payables (money owed to suppliers), short-term loans such as a bank overdraft, accrued expenses like wages or utilities that have been incurred but not yet paid, taxes due within the year like Value Added Tax (VAT), and other similar obligations.

Understanding the composition of current liabilities is essential for assessing a company's short-term financial health and its ability to meet its near-term obligations.