Question

Which of the following is not presented under ‘Current Liabilities’ in the Balance Sheet of
a company?
(A) Short-term Borrowings
(B) Deferred Tax Liabilities
(C) Short-term Provisions
(D)Trade Payables

Answer 1

Answer:

I think the answer is (A).

Explanation:

Answer 2

Option (b). Deferred tax liabilities will not be presented under "current liabilities" in the balance sheet of a company.

Explanation:

• Those liabilities of a company that will be paid off within one year or the normal operating cycle of a company are shown under the heading of "current liabilities" in the balance sheet of a company.
• Deferred tax liabilities are the tax liability that will be paid off in future periods in the respect of the temporary differences between actual tax and book tax.
• Since deferred tax liabilities will be paid in future periods and not in the current year or current accounting period, so it will not be shown under the heading of "current liabilities" in the balance sheet of a company.