Which of the following is not a long-term borrowing of a company?

Debentures.

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Term loans.

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Loans repayable on demand from banks.

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Long-term finance lease obligations.

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Solution

The correct option is C Loans repayable on demand from banks.
Long term liability is the liability which is for more than a year in the business. Loans such as debentures, term loans and finance lease are always for a period of more than 1 year. Therefore, they are considered as long term borrowing of a company.
Loan repayable on demand is a short term borrowing and hence is not a long term borrowing of a company.

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