Question

Current maturities of long-term debts appears in a company’s balance sheet under ______.

Options

• Short-term Provision

• Other Current Liability

• Short-term Borrowings

• Long-term Borrowings

Answer 1

Current maturities of long-term debts appears in a company’s balance sheet under other current liability.

Explanation:

Current Maturities of Long-term Debt refers to the portion of long-term loans that is due for repayment within the next 12 months. Although it’s part of a long-term borrowing, since it’s due soon, it’s reclassified as a current liability. In the Balance Sheet, it appears under:

Current Liabilities → Other Current Liabilities