Interest on non-performing asset should be recognized on ____basis.

Actually received

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Accrual

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Standard

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None of these

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Solution

The correct option is B Actually received
As per guidelines issues by RBI Interest on non performing asset can not be recognizes on accrual basis, It should recognize when interest actually received.

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Similar questions

Q. Interest on performing assets should be recognized on ___________ basis.

Q. A non-performing asset with a financial institution denotes an asset on which __________________.

When the instalment paid in respect of a fixed asset acquired on deferred payment basis includes both interest and loan, the interest element is classified under _________ activities.

Q. The various assets acquired by a concern or firm should be recorded on the basis of the actual amounts involved or spent. This is the assertion of ______________.

Statement: It is necessary to adopt suitable measures to prevent repetition of bad debts by learning from the past experiences of mounting non-performing assets of banks.

Courses of Action:
I. Before granting loan to customers their eligibility for loan should be evaluated strictly.
II. To ensure the payment of installments of loan, the work, for which loan was granted, should be supervised minutely on regular basis.

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Interest on non-performing asset should be recognized on ____basis.

The correct option is B Actually receivedAs per guidelines issues by RBI Interest on non performing asset can not be recognizes on accrual basis, It should recognize when interest actually received.

The correct option is B Actually received
As per guidelines issues by RBI Interest on non performing asset can not be recognizes on accrual basis, It should recognize when interest actually received.