There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.

Assertion (A):  Trade Receivables are shown as Current Assets unless they are receivable after 12 months or after the period of the Operating Cycle from the date of the Balance Sheet.
Reason (R):  Trade Receivables are Current Assets but if it is agreed to be received after 12 months or after the period of the Operating Cycle, they will be shown as Non-current Asset.

Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

Trade receivables realised beyond twelve months from reporting date/ operating cycle starting from the date of their recognition are classified as “Other non-current assets” under the head non-current assets with Note to Accounts. For example, sale of goods or services rendered in normal course of business. Others are classified as current assets and shown on the face of the balance sheet.