Question

Bills receivables appear in a company’s balance sheet under the sub-head ______.

Options

• Current Investments

• Cash Equivalents

• Trade Receivables

• Short term Loans and Advances

Answer 1

Bills receivables appear in a company’s balance sheet under the sub-head trade receivables.

Explanation:

Bills receivable refers to the amount a company is entitled to receive from customers against bills of exchange accepted by them. These are amounts due within a short period, typically under 12 months. In the Balance Sheet, they are classified under:

Current assets → Trade receivables