New Click here to Enroll for SIDBI MSME Expert Class by ex-GM, SBI on Nov 24

    Register

    Question

    For a company, Bank Overdrafts and Outstanding Expenses will be termed as

    A Current Liabilities Correct Answer Incorrect Answer
    B Long term liabilities Correct Answer Incorrect Answer
    C Current Assets Correct Answer Incorrect Answer
    D Other Long-term liabilities Correct Answer Incorrect Answer
    E Borrowings Correct Answer Incorrect Answer

    Solution

    Bank overdraft is a short-term working capital borrowing and outstanding expenses are expenses accrued and not paid by the company. In both cases the company owes money to someone else in a period less than a years and it is therefore current liability for the company.

    Practice Next

    Relevant for Exams: