Which among the following is a current asset?   Operating cycle in months Expected period when payment is received A 10 9 B 10 12 C 10 14 D 15 14 E 15 18 F 20 18 Choose the correct answer from the options given below.

ABCD ABDF AB CDF

ABDF

The correct answer is option 2-ABDF   Operating cycle in months Expected period when payment is received Asset  Reason A 10 9 Current  The expected period of payment is less than operating cycle so it is a current asset. B 10 12 Current  The expected period of payment is more than operating cycle but less than 12 months so it is a current asset. C 10 14 Non-current  The expected period of payment is more than operating cycle and 12 months so it is a non current asset. D 15 14 Current  The expected period of payment is less than operating cycle so it is a current asset. E 15 18 Non-current  The expected period of payment is more than operating cycle and 12 months so it is a non current asset. F 20 18 Current  The expected period of payment is less than operating cycle so it is a current asset.    *An asset is treated as current if payment is received within operating cycle. * An asset is treated as current if payment is received within 12 months if operating cycle is less than 12 months.