Question

Which of the following is not presented under ‘Current Liabilities’ in the Balance Sheet of a company?

Options

• Short-term Borrowings

• Deferred Tax Liabilities

• Short-term Provisions

• Trade Payables

Answer 1

Deferred Tax Liabilities

Explanation:

Deferred tax liabilities represent tax amounts expected to be settled in future periods due to timing differences between accounting income and taxable income. Since these are long-term obligations that extend well beyond the next 12 months, they are classified under Non-Current Liabilities. On the other hand, short-term borrowings, short-term provisions, and trade payables are all obligations due within a year or an operating cycle, placing them strictly under current liabilities.