If realisation period of Asset 'A' is 18 months and operating cycle is 13 months. Asset 'A' is :

Current Asset

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Non-current Asset

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Cannot be classified

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None of these

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Solution

The correct option is B
Non-current Asset

If the realisation period is more than the operating cycle, it is non-current. Hence, Asset 'A' is non-current asset and

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The realisation period of debtors is 18 months, and the operating cycle is 13 months. Debtors are:

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Q. State giving reason whether Trade Receivables are classified as Current Assets or Non-current Assets in the Balance Sheet of a Company as per Schedule III of the Companies Act, 2013 in the following cases.


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

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

Q. If the operating cycle is 15 months & the payment period is 18 months, then the transaction is classified as .

Investments expected to realise beyond operating cycle which is more than twelve months are considered as ____

Operating Cycle and the expected period of realisation of trade receivables is given below. How will you classify the asset ?

$\begin{matrix} Particulars & (i) & (ii) & (iii) & (iv) & (v) & (vi) & (vii) Operating Cycle (Months) & 9 & 17 & 10 & 10 & 14 & 24 & 10 Expected realisation period of Trade & 8 & 15 & 11 & 15 & 16 & 20 & 12 Receivables (Months) \end{matrix}$

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If realisation period of Asset 'A' is 18 months and operating cycle is 13 months. Asset 'A' is :

The correct option is B Non-current Asset If the realisation period is more than the operating cycle, it is non-current. Hence, Asset 'A' is non-current asset and

The correct option is B
Non-current Asset

If the realisation period is more than the operating cycle, it is non-current. Hence, Asset 'A' is non-current asset and