Concept:Trade creditors represent amounts payable to suppliers for credit purchases.
Such amounts are due within a short period and are recorded as short-term liabilities in the balance sheet.
Explanation:The balance c/d on trade creditors is the closing balance of unpaid supplier dues.
It is settled within the normal operating cycle, usually within one year.
Therefore, it is classified under liabilities, not as an asset.
For example, the trade creditors balance of
$6,000 is shown as a short-term liability.
It is not a long-term liability, fixed asset, or current asset.
Answer:B. short-term liability