CUET Preparation Today
How are cash and cash equivalents classified on the balance sheet? |
Always as current assets Always as non-current assets Either as current or non-current, depending on the company's preference It varies depending on the accounting standards followed |
Always as current assets |
The correct answer is option 1- Always as current assets. Cash and cash equivalent is always current however, amounts which qualify as cash and cash equivalents as per AS-3 is shown here. The supremacy is accorded to AS over Schedule III, cash and cash equivalents are to the disclosed in accordance to the prescribed standard. |
