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

[2 marks]

Current asset

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Non-current asset

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Current liability

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Non-current liability

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Solution

The correct option is B
Non-current asset

A debtor is a company or individual that owes money. If the performance period is longer than the operating cycle, it is not current. Therefore, the debtor is a non-current asset.

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Similar questions

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

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


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

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

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