_______ is not an example of a current liability.

Bills Payable

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Debentures

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Trade Creditors

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Outstanding Expenses

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Solution

The correct option is B Debentures
Debenture are issued by the firm to get the money in business for long term purposes. This amount need to repay after a considerable long time i.e. more than 3 years. Hence debenture are not considered as current liabilities.

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Q. Liability in respect of a pending suit is an example of _______________.

Q. What Journal entries would be passed for discharge of following unrecorded liabilities on the dissolution of a firm of partners A and B:
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(c) Firm will have to pay Rs. 10,000 as compensation to an injured employee, which was a contingent liability not accepted by firm.
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Q. Treating a revenue expense as a capital expenditure is an example of __________.

___ refers to the investment in all the current assets such as cash, bills receivable, prepaid expenses, inventories, etc. These current assets get converted into cash within a year.

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_______ is not an example of a current liability.

The correct option is B DebenturesDebenture are issued by the firm to get the money in business for long term purposes. This amount need to repay after a considerable long time i.e. more than 3 years. Hence debenture are not considered as current liabilities.

The correct option is B Debentures
Debenture are issued by the firm to get the money in business for long term purposes. This amount need to repay after a considerable long time i.e. more than 3 years. Hence debenture are not considered as current liabilities.