Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

What is the correct order of current liabilities while preparing balance sheet of a company?
A) Short term provisions
B) Trade payables
C) Short term borrowings
D) Other short term liabilities

Options:

DCBA

ABCD

CBAD

CBDA

Correct Answer:

CBDA

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