Accounting Online Program Certification Practice Test

What is the trade and other payables figure for Crane plc's financial statement as at 31 December 20X5?

1. £149,630

2. £153,630

3. £139,630

4. £160,630

The correct answer is: £153,630

To determine the trade and other payables figure for Crane plc's financial statement as of 31 December 20X5, it is essential to consider the components that construct this figure. Trade payables typically include outstanding obligations to suppliers and other creditors for goods and services received but not yet paid for. In accounting, the trade and other payables are recorded as liabilities on the balance sheet. The correct total value reflects the company’s financial obligations at that specific date, giving insight into its short-term financial health and liquidity. A figure of £153,630 suggests that this amount accounts for various liabilities, such as trade payables, tax payables, and other accrued expenses, properly recorded and verified against supporting documentation and internal records. If this amount is correct, it would imply that all components of the payables have been accurately calculated, following appropriate accounting principles, ensuring that they reflect true liability levels as of the reporting date. This assessment will support stakeholders in understanding Crane plc's financial position and its obligations to repay creditors in the upcoming period.