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As per Indian company law, how are current liabilities classified when preparing the balance sheet?
  • a)
    Secured and unsecured liabilities
  • b)
    Short-term and long-term liabilities
  • c)
    Liabilities to related parties and non-related parties
  • d)
    Trade liabilities and non-trade liabilities
Correct answer is option 'B'. Can you explain this answer?
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As per Indian company law, how are current liabilities classified when...
Current liabilities, when preparing the balance sheet, are classified into short-term liabilities and long-term liabilities. This classification helps provide a clear understanding of the company's obligations that are due within the current reporting period and those that extend beyond.
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As per Indian company law, how are current liabilities classified when preparing the balance sheet?a)Secured and unsecured liabilitiesb)Short-term and long-term liabilitiesc)Liabilities to related parties and non-related partiesd)Trade liabilities and non-trade liabilitiesCorrect answer is option 'B'. Can you explain this answer?
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