Question

Which item is shown under "Long-term Borrowings" in the Balance Sheet?

• A. Trade payables
• B. Public deposits
• C. Short-term loans
• D. Unpaid dividends

Hint:

Long-term borrowings include loans and deposits repayable after 12 months or more.

Answer 1

The Correct Option is B

Step 1: Understand classification of liabilities
Long-term borrowings include funds borrowed for more than one year.
Public deposits are deposits accepted by companies for a fixed tenure, usually longer than a year, classified as long-term borrowings.
Trade payables are current liabilities.
Short-term loans are current liabilities.
Unpaid dividends are also current liabilities.
Step 2: Conclusion Only Public deposits are shown under Long-term Borrowings.