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A) These are due within one yearB) These are short-term loansC) A vague term for loans to be repaid by an enterprise after twelve monthsD) In working capital, these are deducted from assets
Option C is the right answer.
Choice C, A vague term for loans to be repaid by an enterprise after twelve months in wrong about current liabilities.
Choice D, in working capital, these are deducted from assets is also wrong in about current liabilities. Because in working capital current assets are deducted from the current assets but not not from the total assets.
As we know assets are divided in to two types namely:
current assets and
fixed/plant assets
So, if I am not wrong, i think "saying in working capital, current liabilities are deducted from assets" will be an incorrect statement about defining current liabilities.
There fore, as to me both choices, C and D are wrong statements about current liabilities
Thanks.
A vague term for loans to be repaid by an enterprise after twelve months
(C) is the right Ans.
Thank you
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