To which balance sheet grouping does the item 'bank loan repayable in three years' belong?
A) Current asset
B) Noncurrent asset
C) Current liability
D) Noncurrent liability

Name: To which balance sheet grouping does the item 'bank loan repayable in three years' belong? A) Current asset B) Noncurrent asset C) Current liability D) Noncurrent liability
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Question

Quizplus · Accepted Answer

Bank loan repayable in three years is a long-term obligation and hence belongs to the noncurrent liability section of the balance sheet.

To Which Balance Sheet Grouping Does the Item 'Bank Loan