6 Debentures appear in a Company rsquo s Balance Sheet under the Sub head hellip hellip hellip helli...........

6% Debentures appear in a Company’s Balance Sheet under the Sub-head ………………….

Long-term Provisions

Long-term Borrowings

Other Current Liabilities

Other Long-term Liabilities

- Long-term Provisions:

- These are liabilities for which the exact amount or timing is uncertain.

- Examples include pension liabilities or future repair provisions.

- It is not typically where debentures are classified.

- Long-term Borrowings:

- These represent loans and financial obligations that are due beyond 12 months.

- 6% Debentures fit this category as they usually are raised for extended periods.

- Correct Answer: Long-term Borrowings

- Other Current Liabilities:

- These are obligations due within a year, like accounts payable or short-term loans.

- Debentures with a maturity of more than 12 months would not be classified here.

- Other Long-term Liabilities:

- This includes liabilities that don't fall into any specific categories and are due beyond a year.

- While debentures are long-term, they are usually classified under borrowings.

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