Question

Computers taken on hire by a business for a period of twelve months should be classified as ________________.

• A. Current assets
• B. Intangible assets
• C. Deferred revenue expenditure
• D. None of the above

Answer 1

The correct option is D None of the above

Computer taken on hire is not an asset of the organization as the ownership is not passed. Since it has taken on hire/rent, the legal ownership belongs to the person who is providing such assets on hire.

Rental paid on hiring is an expense and to be recorded in profit & loss account.