Select the appropriate answer from the following. Interest accrued but not due on bank loan appears in Balance Sheet under the head of: a) Trade Payables b) Short-Term Borrowings c... Select the appropriate answer from the following. Interest accrued but not due on bank loan appears in Balance Sheet under the head of: a) Trade Payables b) Short-Term Borrowings c) Other Current Liabilities d) Short-Term Provisions. Also, match the following items from table A and B.
Understand the Problem
The question is an examination paper related to Financial Accounting and Auditing, featuring multiple choice questions and matching items. It asks the examinee to choose the correct answers from given options, as well as match items from two columns.
Answer
Other Current Liabilities.
The correct answer is c) Other Current Liabilities.
Answer for screen readers
The correct answer is c) Other Current Liabilities.
More Information
Interest accrued but not due on a bank loan is typically classified under 'Other Current Liabilities' as it represents an obligation incurred but not yet payable.
Tips
Confusing 'accrued' with 'due' can lead to incorrect classification. Ensure the categorization aligns with financial guidelines.
Sources
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