PRC-1 · Chapter 1 · Question 80 of 100
Consider the following balances: Trade Creditors Rs. 40,000; Bank Overdraft Rs. 25,000; Bills Payable Rs. 15,000; Long-term Bank Loan Rs. 100,000. What is the total value of current liabilities?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Rs. 80,000
Explanation
Current liabilities include short-term obligations. Creditors (40k) + Bank Overdraft (25k) + Bills Payable (15k) = Rs. 80,000. The long-term loan is a non-current liability.
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