Which among the following items is shown as the Major Head in the balance sheet of a company?
Answer & explanation
Correct answer: option 2
In a standard balance sheet, items are organized into major categories. The major heads typically include:
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Assets (which are further divided into Current Assets and Non-Current Assets)
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Liabilities (which are further divided into Current Liabilities and Non-Current Liabilities)
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Equity (or Shareholders' Funds)
The other options are all sub-items that fall under these major heads:
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Deferred tax assets are a type of non-current asset
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Trade payables are a sub-heading under current liabilities.
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Long-term provisions are a sub-heading under non-current liabilities.