PRC-1 · Chapter 1 · Question 43 of 100
The accountant of 'Horizon Corp' is calculating liabilities for the year-end statement of financial position. The balances include: Trade Payables Rs. 45,000, Accrued Electricity Rs. 10,000, Long-term Bank Loan Rs. 300,000, and a Bank Overdraft of Rs. 20,000. What is the total of the current liabilities?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Rs. 75,000
Explanation
Current liabilities are obligations expected to be settled within one year. This includes the Trade Payables (Rs. 45,000), Accrued Electricity (Rs. 10,000), and the Bank Overdraft (Rs. 20,000), which sum up to Rs. 75,000.
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