Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:
Loan repayable on demand comes under which category of borrowing of a company?
Options:
Long term borrowing
Short term borrowing
Short term advances
None of these
Correct Answer:
Short term borrowing
Explanation:
Loans repayable on demand or whose original tenure is not more than twelve months/operating cycle are classified as short-term borrowings on the face of balance sheet.