Accounting 0452 · IGCSE · Other payables and other receivables

Other payables and other receivables — practice question

Gem has operated the business for many years. On 1 March, Gem bought a new factory. On that date, he paid $900$ for three months’ insurance on the factory. What amount should Gem record for insurance in his statement of financial position at 31 March?

  • A$300$ in current assets
  • B$300$ in current liabilities
  • C$600$ in current assets
  • D$600$ in current liabilities

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