What is true in respect of classification of Fixed assets in the balance sheet of a company?
Answer & explanation
Correct answer: option 1
The correct answer is option 1- Both tangible and intangible assets are non-current.
Both tangible and intangible fixed assets are non-current as per Schedule III of the Companies Act 2013. This may also be noted if the useful life of the asset is less than 12 months, it will still fall under non-current.
If the useful life of a tangible or intangible fixed asset is less than 12 months, it will fall under current assets- This is wrong as fixed asset will non current always.