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What are the liabilities which must eventually be repaid to the bank?
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Which of the following items may appear as current liabilities in a company’s balance sheet?
Liability is an entity's present obligation arising from a past event. The settlement of which will result in an inflow of economic benefit to the entity.
Current liabilities are debts of the business that must be paid within a short period of time (by convention, within one year).
Banl loans and bank overdrafts are both current liabilities which must eventually be repaid to the bank.
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