Question

Which item is shown under "Long-term Borrowings" in the Balance Sheet?

• A. Trade payables
• B. Public deposits
• C. Short-term loans
• D. Unpaid dividends

Hint:

Long-term borrowings include loans and deposits repayable after 12 months or more.

Answer 1

The Correct Option is B

Step 1: Classification of Liabilities
Long-term borrowings encompass funds borrowed for periods exceeding one year.
Public deposits, accepted by companies for a fixed term typically longer than one year, are categorized as long-term borrowings.
Trade payables, Short-term loans, and Unpaid dividends are all classified as current liabilities.
Step 2: Conclusion Public deposits are the sole item presented under Long-term Borrowings.