Analysis of Financial Statements · Class 12 · CBSE · Commerce Accountancy
Which of the following items is shown under the head 'Non-Current Liabilities' in the Balance Sheet of a company prepared as per Schedule III of the…
Practice question from Analysis of Financial Statements (Class 12 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
easy · MCQ · Q-656CFF
Which of the following items is shown under the head 'Non-Current Liabilities' in the Balance Sheet of a company prepared as per Schedule III of the Companies Act, 2013?
- A.Short-term borrowings
- B.Long-term borrowingsCorrect answer
- C.Trade payables
- D.Short-term provisions
Solution
Long-term borrowings are obligations of the company that are payable after a period of 12 months from the date of the balance sheet, hence they are classified under Non-Current Liabilities. Short-term borrowings, trade payables, and short-term provisions are classified under Current Liabilities.
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