Question : If any long-term borrowings (Debentures ) redeemable after 15 years from the date of issue are shown as
Option 1: Short – term Borrowings
Option 2: Other Long-term Liabilities
Option 3: Long -term Borrowings.
Option 4: Other current liabilities
Answer (1)
21st Jan, 2024
Correct Answer: Other Long-term Liabilities
Solution : Answer = Other Long-term Liabilities
The long-term borrowings (debentures) redeemable after 15 years from the date of issue would typically be categorized as "Other Long-term Liabilities" on the balance sheet. This classification reflects their long-term nature and distinguishes them from short-term borrowings or current liabilities, which have shorter redemption periods.
Hence, the correct option is 2.
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