An asset is not classified as current when :

CS Executive · Financial and Strategic Management · PYQS · June 2023
An asset is not classified as current when :
(A) The asset is held primarily for the purpose of trading activities
(B) It is not cash equivalent
(C) It is expected to be realized within twelve months after the reporting period
(D) It is expected to be realized or intends to be sold or consumed in normal operating cycle of the entity

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Financial Management

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