Question

Current liabilities include:
(A) Trade receivables
(B) Unclaimed dividend
(C) Interest accrued but not due on loan
(D) Acceptances
(E) 12% debentures redeemable after four years
Choose the correct answer from the options given below :

• A. (A), (B) and (C) only
• B. (B), (C) and (D) only
• C. (A), (C) and (D) only
• D. (A), (B) and (D) only

Hint:

Liabilities always represent responsibility or anything payables by company, if not it is never a liability .

Answer 1

The Correct Option is B

What are Current Liabilities? In Accounting terms they are short term (usually within the short term).
(A) Trade receivables- In the following term its not a liability for us rather an assets.

(B) Unclaimed dividend- Yes, its a responsibility that you have not paid to investors

(C) Interest accrued but not due on loan- Responsibility for short term is liability, and its correct.

(D) Acceptances- Bills of exchange (short-term obligations), also it is true.

(E) 12% debentures redeemable after four years- It is long term, hence, the answer cannot contain E.