Question : Due to be Settled within 12 Months from the Date of the Balance Sheet: A liability is classified or shown as ------.
Option 1: Non – current liabilities
Option 2: Current liabilities
Option 3: Current assets
Option 4: Non – current assets
Correct Answer: Current liabilities
Solution : Answer = Current liabilities
Liabilities due to be settled within 12 months from the date of the balance sheet are classified as current liabilities. These are obligations that the company is expected to pay off within the next operating cycle or fiscal year. They include short-term loans, trade payables, and other current obligations. Hence, the correct option is 2.
Question : When Period of Operating Cycle is less than 12 Months: Liabilities due for settlement (payment) within 12 months from the date of Balance Sheet are classified (shown) as ------------------
Question : When the Period of Operating Cycle is more than 12 Months (Say 15 Months): Liabilities due for settlement (payment) within 15 months from the date of the Balance Sheet are classified (shown) as --------------
Question : The premium on redemption of debenture is shown under which head of the Balance Sheet?
Question : If the Expected Payment period is more than the period of the Operating Cycle and after 12 months from the date of the Balance Sheet.
Question : In a Company Balance Sheet, the credit (profit) balance of the Statement of Profit and Loss is shown under:
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