Practicing Success
Practicing Success
CUET Preparation Today
| An asset is current asset if it is expected to be settled in less than ____________ months in the context of Schedule III of the Companies Act 2013? |
3 6 9 12 |
| 12 |
| As per Schedule III of the Companies Act 2013, the classified balance sheet in terms of current and non-current assets and current and non-current liabilities have been introduced. The criteria for defining current assets and liabilities has been clearly spelled out with non-current assets and liabilities being the residual items. An item is classified as current: • if it is involved in entity’s operating cycle or, • is expected to be realised/settled within twelve months or, • if it is held primarily for trading or, • is cash and cash equivalent or, • if entity does not have on unconditional rights to defer settlement of liability for atleast 12 months after the reporting period, Other assets and liabilities are non-current. |
