If the operating cycle is 16 months and the expected period of payment is 15 months, then in which category of the company's balance sheet it will go?

Current Liabilities

The correct answer is option 2- Current Liabilities.

If the payment period is less than the period of the operating cycle then it will be treated as a current. Here, payment is given means the company has to pay i.e it is a liability. So, the answer is current liability.