Homework Answers
If collection of a receivable is expected beyond one year, it is classified as a non current asset and reported under other receivables.
Correct option is (a)
If an asset is expected to be converted into within a period of one year, it is classified as a current asset and if an asset is expected to be converted into cash after the expiry of one year, it is classified as a non current asset.
Hence, If collection of a receivable is expected beyond one year, it is classified as a non current asset.
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