Which among the following is a current asset? Operating cycle in mont…

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.