Fixed deposit for the term of five years will come under which of the following?

Non Current Investment

The correct answer is option 1- Non Current Investment.

Fixed deposit for the term of five years will come under Non Current Investment.

Non-Current Investment includes investments that are not intended to be converted into cash or used up within one year from the balance sheet date. Since the FD has a term of five years, it is not readily available for use in the short term and thus qualifies as a non-current asset.It does not come under Current Asset (which includes items expected to be liquidated within 12 months), Current Liability (which refers to obligations), or Bank (which includes cash and equivalents).