Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

What is the correct order of appearance of the following items under the head Non Current Liabilities in the Balance Sheet?
Deferred tax liabilities (net), Long term provisions, other long term liabilities, Long term borrowings

Options:

(a) Long term borrowings (b)Long term provisions (c) Deferred tax liabilities (net) (d) Other long term liabilities

(a) Long term borrowings (b)Other long term liabilities (c) Deferred tax liabilities (net) (d)Long term provisions

(a) Long term borrowings (b) Deferred tax liabilities (net) (c) Other long term liabilities (d) Long term provisions

None of the above

Correct Answer:

(a) Long term borrowings (b) Deferred tax liabilities (net) (c) Other long term liabilities (d) Long term provisions

Explanation:

* EQUITY AND LIABILITIES
1) Shareholder’s Funds (a) Share Capital (b) Reserves and Surplus (c) Money received against share warrants
2) Share Application money pending allotment
3) Non-current Liabilities (a) Long-term borrowings (b) Deferred tax liabilities (net) (c) Other long-term liabilities (d) Long-term provisions
4) Current Liabilities (a) Short-term borrowings (b) Trade payables (c) Other current liabilities (d) Short-term provisions
* ASSETS
1) Non-Current Assets
(a) Fixed assets
       (i) Tangible assets
       (ii) Intangible assets
       (iii) Capital work-in-progress
       (iv) Intangible assets under development
(b) Non-current investments (c) Deferred tax assets (net) (d) Long-term loans and advances (e) Other non-current assets
2) Current Assets (a) Current investments (b) Inventories (c) Trade receivables (d) Cash and cash equivalents (e) Short-term loans and advances (f) Other current assets