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

Question 5

Multiple Choice

Susannah's statement of financial position at 31 March 20X7 includes the following information: 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 A) Both A + B B) B only C) A only D) Neither A nor B 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


A) Both A + B
B) B only
C) A only
D) Neither A nor B

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