Susannah's statement of financial position at 31 March 20X7 includes the following information: Trade payables include one amount that has been owed £4500 since 1 January.Susannah is threatened with legal action unless this amount is paid immediately.Susannah's business overdraft limit is £10 000.
Assuming that there are no other transactions, and Susannah pays the full £4500 owing, which of the two following statements are correct?
A.The current liabilities of the business will exceed current assets
B. The overdraft limit will be exceeded

Question

Susannah's statement of financial position at 31 March 20X7 includes the following information:  Trade payables include one amount that has been owed £4500 since 1 January.Susannah is threatened with legal action unless this amount is paid immediately.Susannah's business overdraft limit is £10 000.
Assuming that there are no other transactions, and Susannah pays the full £4500 owing, which of the two following statements are correct?
A.The current liabilities of the business will exceed current assets
B. The overdraft limit will be exceeded

Quizplus · Accepted Answer

The Answer of Susannah's statement of financial position at 31 March 20X7 includes the following information:  Trade payables include one amount that has been owed £4500 since 1 January.Susannah is threatened with legal action unless this amount is paid immediately.Susannah's business overdraft limit is £10 000.
Assuming that there are no other transactions, and Susannah pays the full £4500 owing, which of the two following statements are correct?
A.The current liabilities of the business will exceed current assets
B. The overdraft limit will be exceeded

Susannah's Statement of Financial Position at 31 March 20X7 Includes