Question

What criteria classify an asset as current?

a.

It is held primarily for the purpose of being traded.

b.

It is expected to be realised within twelve months after the reporting date.

c.

It is cash or cash equivalent unless restricted from being exchanged for at least twelve months.

d.

All of the above

Posted under IC 89 Management Accounting

Answer: (d).All of the above Explanation:An asset can be classified as current if it meets any of the mentioned criteria. Assets held for trading, expected realization within twelve months, and cash equivalents fall under the category of current assets.

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Q. What criteria classify an asset as current?
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