Tax deducted at source appears in the Balance Sheet
Correct answer: C. On the liabilities side under current liabilities
- A. On the assets side under current assets
- B. On the assets side under loans and advances
- C. On the liabilities side under current liabilities
- D. On the liabilities side under provisionsAccounting & Auditing
Explanation
Tax deducted at source is collected from payees and remains payable to the tax authority until deposited, so it is shown as a current liability. It is not an asset or a provision in this context.
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About Financial Statements
Financial statements present a business's financial performance and position through the income statement, statement of financial position, cash flow statement and changes in equity. Questions involve preparing and interpreting these statements, adjusting entries, depreciation, closing inventory, accrued and prepaid items, and distinguishing profit from cash flow.
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