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There are 2 types of investments of ₹90000 each, one is for 11 months and the other one is for 26 months. Where will these investments be shown in the financial statements of the company? |
11 months of investments in the statement of profit and loss, 26 months of investments in the balance sheet. 11 months of investments in the balance sheet, 26 months of investments in the statement of profit and loss. Both in the statement of profit and loss. Both in the balance sheet. |
Both in the balance sheet. |
The correct answer is option 4- Both in the balance sheet. Investments are also classified into current and non-current categories. Investments expected to realize within twelve months are considered as current investments under current assets. Others are classified as non-current investments under non-current assets. Both are however shown on the face of the balance sheet. |
