A trade receivable will be treated as current, if it is likely to be realised within ______ from the date of balance sheet.

12 months

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18 months

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6 months

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None of these

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Solution

The correct option is A
12 months

A trade receivable will be treated as current, if it is likely to be realised within 12 months from the date of balance sheet

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Case	Operating Cycle Period (Months)	Expected Realisation Period (Months)

1	10	11
2	10	12
3	10	13
4	14	13
5	15	16

(i) Unamortised Loss on Issue of Debentures (To be written off after 12 months from the date of Balance Sheet);
(ii) 10% Debentures;	(iii) Stock-in-Trade;	(iv) Cash at Bank;
(v) Bills Receivable;	(vi) Goodwill;	(vii) Loose Tools;
(viii) Truck;	(ix) Provision for Tax; and	(x) Sundry Creditors?

A trade receivable will be treated as current, if it is likely to be realised within ______ from the date of balance sheet.

Trade payables to be settled beyond 12 months from the date of balance sheet or beyond the operating cycle are classified under _____

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