Question

Short-term Borrowings appear in a Company’s Balance Sheet under the head

…………………..

(A) Current Assets

(B) Current Liabilities

(C) Non-Current Liabilities

(D) Non-Current Assets​

Answer 1

(B) Current Liabilities

Explanation:

Current Liabilities are expected to be settled within 12 months from the date of balance sheet or in company's normal operating cycle.

The heading come under Current Liabilities are:

• Short-term Borrowings
• Trade Payables
• Other current liabilities
• Short-term Provisions.

Short-term Borrowings:-

i) Short term deposits like public deposits

ii) Loan repayable on demand within 12 months

  - from banks

  - from other parties

iii) Other loans

  - Cash credit

  - Bank Overdraft, etc.