Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:
Under which subhead 'Security Deposits'are presented in the Balance Sheet of a company?
Options:
Fixed Assets
Other Non-current Assets
Long-term Loans and Advances
Other Current Liabilities
Correct Answer:
Other Non-current Assets
Explanation:
When a business places a security deposit – that is, it gives someone else money to hold against possible future charges – the deposit is listed as an asset on its balance sheet. And it is shown in other non current assets.