Question

Short-term borrowings appear in a Company’s balance sheet under the head ______.

Options

• Current Assets

• Current Liabilities

• Non-Current Liabilities

• Non-Current Assets

Answer 1

Short-term borrowings appear in a Company’s balance sheet under the head current liabilities.

Explnation:

Short-term Borrowings are borrowings that are repayable within 12 months from the date of the balance sheet. These include:

• Bank overdrafts
• Short-term loans
• Cash credit
• Loans repayable on demand