PRC-1 · Chapter 1 · Question 13 of 100
Consider the following balances for 'Nova Enterprises': Trade Payables Rs. 55,000, Short-term Bank Overdraft Rs. 25,000, Trade Receivables Rs. 40,000, Long-term Bank Loan Rs. 150,000. What is the total amount of current liabilities?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 80,000
Explanation
Current liabilities are obligations payable within one year. Here, Trade Payables (Rs. 55,000) and Bank Overdraft (Rs. 25,000) are current liabilities, totaling Rs. 80,000.
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