Question

Current liabilities do not include
(1) dividend payable
(2) short term loan
(3) outstanding expenses

(4) debentures

Answer 1

Current liabilities not include debentures 

Answer 2

Option 4 is the correct answer i.e. Debentures.

• Current Liabilities do not include Debentures.

• Debentures are long term liability and it is included in Non- Current Liabilities.

• Current Liabilities are short term liabilities and they are defined in Schedule III and they include Short Term Borrowings, Trade Payable, Other Current Liabilities and Short Term Provision.

• Dividend Payable is short term liability as it is paid yearly.

• Short Term Loan is a short term liability.

• Outstanding Expenses are expenses which is short term so it is current liability.

• Debentures are long term liability so it is non  current liability.