Question

Debentures redeemable after 10 years from the date of issue are shown as ______.

Options

• Long-term Borrowings

• Other Long-term Liabilities

• Short-term Borrowings

• Other Short-term Liabilities

Answer 1

Debentures redeemable after 10 years from the date of issue are shown as Long-term Borrowings.

Explanation:

Because these debentures are due for repayment after 10 years, they exceed the standard 12-month operating cycle and are classified as a Non-current Liability. Since debentures are debt instruments used to raise capital, they are strictly categorized under the specific sub-head of Long-term Borrowings on the Balance Sheet.