HomeTestsSearchRankProfile
easyMCQCUET Accountancy 2025 16 May Shift 12026CUET Accountancy
1 mark

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?

  1. A
    Non-Current Investment
  2. B
    Current Asset
  3. C
    Current Liability
  4. D
    Bank

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).

Practice this question

Try it yourself before checking the explanation above.

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?
A
Non-Current Investment
B
Current Asset
C
Current Liability
D
Bank

Share This Question

Related Questions

Ready for a Full Test?

Practice with timed mock tests and track your performance across CUET Accountancy.

Discussion