Practicing Success
Which of the following is represented, if the Operating cycle is 11 months and the expected period of payment is 13 months? |
Current assets Non-current assets Current liability Non-current liability |
Non-current liability |
The correct answer is option 4- Non-current liability. The expected period of payment means it is a liability and if the expected period is more than the operating cycle, then, it is non-current. So, the correct answer is option 4 i.e. non current liability. |