?
Which of them are current liabilities?
Which of them are current liabilities?
1. Debentures
2. Prepaid rent
3. Interest accrued
4. Bank overdraft
Select the correct answer:
Answer & Solution
Correct Answer:
Option
B
Current liabilities are obligations that a company needs to settle within a year.
1. Debentures are long-term liabilities, not current liabilities.
2. Prepaid rent is considered an asset, not a liability.
3. Interest accrued is a current liability as it represents interest that is owed but not yet paid.
4. Bank overdraft is a current liability because it is a short-term borrowing from a bank.
Therefore, the only correct current liability among the options is the bank overdraft.
1. Debentures are long-term liabilities, not current liabilities.
2. Prepaid rent is considered an asset, not a liability.
3. Interest accrued is a current liability as it represents interest that is owed but not yet paid.
4. Bank overdraft is a current liability because it is a short-term borrowing from a bank.
Therefore, the only correct current liability among the options is the bank overdraft.
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LoginDEBENTURES ARE LONG TERM LIABILITY.
PREPAID RENT IS EXPENSES PAID IN ADVANCE
INT ACCRUED IS O/S INCOME
SO BANK OVERDRAFT IS CORRECT
Answer Option C