Question : 'Loan', 'Loan on Mortgage' and 'Bank Loan' are____________therefore, these should not be included in______________.
Option 1: Short term borrowing, current liabilities
Option 2: Long term borrowing, non- current liabilities
Option 3: Long term borrowing, current liabilities
Option 4: None of the above
Correct Answer: Long term borrowing, current liabilities
Solution : Answer = Long-term borrowing, current liabilities
'Loan', 'Loan on Mortgage', and 'Bank Loan' are long-term borrowings. Therefore, they should not be included in current liabilities but rather in long-term liabilities since they are obligations payable beyond the next 12 months. Hence, the correct option is 3.
Question : Which of the following statements is false?
Option 1: Total Assets = Fixed Assets + Non-current Investments + Current Assets
Option 2: Long-term Borrowings or Debt = Total Borrowing - Short-term Borrowings
Option 3: Total Assets = Shareholders Funds + Long term Borrowings + Short term Borrowings + Other Current liabilities
Option 4: None of the above.
Question : Which of the following statements is incorrect?
Option 1: Working Capital = Current Assets - Current Liabilities
Option 2: Current Liabilities = Total Assets - Non-Current Liabilities - Shareholder's fund
Option 3: Working Capital = Equity Share Capital + Reserves & Surplus - Long Term Loan - Non-Current Assets
Question : Which of the following are included in Non - current liabilities?
Option 1: Long-term Borrowings
Option 2: Deferred Tax Liabilities (Net)
Option 3: Other Long-term Liabilities
Option 4: All of the above
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