Question

Which of the following items is shown under the head ‘Non-current Assets’, in the Balance Sheet of a company?

पर्याय

• Underwriting Commission

• Current Investment

• Inventory

• Patents

Answer 1

Patents

Explanation:

Patents are classified under Non-current Assets because they are long-term, non-physical resources owned by a company to generate economic benefits over multiple years, falling under the sub-head of Intangible Assets. Conversely, inventory and current investments are short-term resources classified under current assets. Underwriting commission is no longer shown directly as an asset on the face of the balance sheet; it is written off through the Statement of Profit and Loss or Reserves and Surplus.