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.
Option 1: Current liabilities
Option 2: Non – current liabilities
Option 3: Current Assets
Option 4: None of the above
Answer (1)
16th Jan, 2024
Correct Answer: Non – current liabilities
Solution : Answer = Non – current liabilities
If the expected payment period exceeds both the operating cycle and 12 months from the date of the balance sheet, it indicates that the liabilities are not due for payment within the short term. Therefore, these liabilities would be classified as non-current liabilities on the balance sheet.
Hence, the correct option is 2.
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