Which of them are current liabilities? 1. Debentures 2. Prepaid rent 3. Interest accrued 4. Bank overdraft Select the correct answer: A. 1, 2, 3 and 4 B. Only 4 C. 2, 3 and 4 D. 1, 2 and 3

The correct answer is C. 2, 3 and 4.

Debentures are long-term liabilities, so they are not included in current liabilities. Prepaid rent is an asset, so it is also not included in current liabilities. Interest accrued is a current liability because it is a liability that is owed and will be paid in the near future. Bank overdraft is a current liability because it is a loan that is owed to the bank and will be repaid in the near future.

Here is a more detailed explanation of each option:

1. Debentures are long-term liabilities. They are loans that a company borrows from investors. Debentures are usually repaid over a period of 5 to 10 years.
2. Prepaid rent is an asset. It is money that a company has paid in advance for rent. Prepaid rent is an asset because it represents a future benefit to the company. The company will be able to use the prepaid rent to offset future rent payments.
3. Interest accrued is a current liability. It is interest that has been earned on a loan but has not yet been paid. Interest accrued is a current liability because it is a liability that is owed and will be paid in the near future.
4. Bank overdraft is a current liability. It is a loan that a company borrows from its bank. Bank overdrafts are usually repaid within 30 days.

I hope this explanation is helpful. Please let me know if you have any other questions.