Which of them are current liabilities?
1. Debentures
2. Prepaid rent
3. Interest accrued
4. Bank overdraft
Select the correct answer:
A. 1, 2, 3 and 4
B. Only 4
C. 2, 3 and 4
D. 1, 2 and 3
Answer: Option D
This Question Belongs to Commerce >> Accounting
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ANS B IS CORRECT
OPTION B IS CORRECT.
DEBENTURES ARE LONG TERM LIABILITY.
PREPAID RENT IS EXPENSES PAID IN ADVANCE
INT ACCRUED IS O/S INCOME
SO BANK OVERDRAFT IS CORRECT
Current Liabilities include the liabilities which are paid within one year. One the other hand, debenture is the long term liability. Here the answer will be 2,3,4.
Answer Option C