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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 

 


Team Careers360 8th Jan, 2024
Answer (1)
Team Careers360 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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