Question : Where operating cycle cannot be identified, it is assumed to be of -------- months.

Option 1: 15 months

Option 2: 18 months

Option 3: 12 months

Option 4: None of the above

Question : Which of the following statements is not true, with respect to operating cycles? 

Option 1: Operating cycle cannot be identified, it is assumed to be of 13 months.

Option 2: Operating Cycle means the time taken by a company to acquire an asset for processing and Converting it into Cash and Cash Equivalents.

Option 3: Operating Cycle is determined for each class of business separately.

Option 4: All of the above 

Question : Which of the following statements is not true, with respect to operating cycles? 

Option 1: Operating cycle cannot be identified, it is assumed to be of 13 months.

Option 2: Operating Cycle means the time taken by a company to acquire an asset for processing and Converting it into Cash and Cash Equivalents.

Option 3: Operating Cycle is determined for each class of business separately.

Option 4: All of the above 

Question : When the Period of Operating Cycle is more than 12 Months (Say 15 Months): Liabilities due for settlement (payment) within 15 months from the date of the Balance Sheet are classified (shown) as --------------

Option 1: Current liabilities 

Option 2: Non – current liabilities 

Option 3: Non – current assets 

Option 4: None the above 

Question : When Period of Operating Cycle is less than 12 Months: Liabilities due for settlement (payment) within 12 months from the date of Balance Sheet are classified (shown) as ------------------

Option 1: Current liabilities

Option 2: Non – current liabilities 

Option 3: Non – current assets 

Option 4: None of the above