Bank Overdraft and cash credit are shown

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Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Financial Statements of a Company

Question:

Bank Overdraft and cash credit are shown under which head in the company’s Balance Sheet?

Options:

Cash Equivalents

Short term Borrowings

Non-Current Liabilities

Current Assets

Correct Answer:

Short term Borrowings

Explanation:

The correct answer is option 2- Short term Borrowings.

Bank Overdraft and cash credit are shown under Short term Borrowings in the company’s Balance Sheet.

*Current Liabilities are classified as (a) Short-term borrowings (b) Trade payables (c) Other current liabilities (d) Short-term provisions