A fixed deposit with a bank maturity term of five years will be classified under which of the following lines in a corporate Balance Sheet?
- ANon-Current Investment
- BCurrent Asset
- CCurrent Liability
- DBank
Solution & Step-by-step Explanation
Any bank deposit or investment asset with a maturity lock-in duration exceeding 12 months (or exceeding the operating cycle period) cannot be part of current assets. It is classified under Non-Current Assets under the sub-head Non-Current Investments (specifically under Long-Term Bank Deposits).