[amp_mcq option1=”i, ii, iii, iv” option2=”iv, iii, ii, i” option3=”iii, ii, i, iv” option4=”iii, ii, iv, i” correct=”option3″]
The correct answer is: C. iii, ii, i, iv
A company balance sheet is a financial statement that shows a company’s assets, liabilities, and equity at a specific point in time. Assets are things that a company owns and expects to benefit from in the future, such as cash, inventory, and property. Liabilities are things that a company owes to others, such as accounts payable and loans. Equity is the difference between a company’s assets and liabilities.
Liabilities are typically listed on a balance sheet in order of their maturity, with the most short-term liabilities listed first. Bank overdrafts are the most short-term liabilities, as they are loans that a company can draw on at any time. Bank loans are also short-term liabilities, but they are typically repaid over a longer period of time than bank overdrafts. Share capital is the amount of money that shareholders have invested in the company. Provision for taxation is a liability that represents the company’s estimated tax liability for the current year.
Therefore, the correct order of the liabilities in a company balance sheet is:
- Bank overdrafts
- Bank loans
- Share capital
- Provision for taxation