Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

If a company has tangible assets with a useful life of 24 months and intangible assets with a useful life of 6 months, how would they be classified?

Options:

Both tangible and intangible assets would be current

Both tangible and intangible assets would be non-current

Tangible assets would be current, and intangible assets would be non-current

Tangible assets would be non-current, and intangible assets would be current

Correct Answer:

Both tangible and intangible assets would be non-current

Explanation:

Both tangible and intangible assets are classified as non-current. It's worth noting that even if an asset's useful life is less than 12 months, it will still be categorized as non-current.