Which of the following is NOT correct in respect of trade payables as per Schedule III of the Companies Act 2013?
Answer & explanation
Correct answer: option 3
As per Schedule III of the Companies Act 2013, Sundry creditors have been replaced with the term Trade payables and are classified as current and non-current.
Trade payables to be settled beyond 12 months from the date of balance sheet or beyond the operating cycle are classified under “other long-term liabilities” with Note to Account.
The balance of trade payables are classified as current liabilities on the face of balance sheet.
Trade payables to be settled beyond 12 months from the date of balance sheet or beyond the operating cycle are classified under “other long-term liabilities” with Note to Account.
The balance of trade payables are classified as current liabilities on the face of balance sheet.