Question : ---------------- are the assets which are likely to be converted into cash or cash equivalents within 12 months from the date of the Balance Sheet or within the period of an operating cycle.
Option 1: Liquid Assets
Option 2: Current Assets
Option 3: Current liabilities
Option 4: Total Assets
Correct Answer: Current Assets
Solution : Answer = Current Assets
Current assets are assets expected to be converted into cash or cash equivalents within 12 months from the balance sheet date or within the operating cycle. Examples include cash, accounts receivable, inventory, and short-term investments. They are crucial for assessing a company's short-term liquidity and financial health. Hence, the correct option is 2.
Question : When the Period of Operating Cycle is more than 12 Months (Say 15 Months): Liabilities due for settlement (payment) within 15 months from the date of the Balance Sheet are classified (shown) as --------------
Question : When Period of Operating Cycle is less than 12 Months: Liabilities due for settlement (payment) within 12 months from the date of Balance Sheet are classified (shown) as ------------------
Question : If the Expected Payment period is more than the period of the Operating Cycle and after 12 months from the date of the Balance Sheet.
Question : Which of the following statements is not true?
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