Question

Interest accrued on investments appear in a company’s balance sheet under the sub-head ______.

Options

• Non-Current Investments

• Current Investments

• Other Current Assets

• Other Non-Current Assets

Answer 1

Interest accrued on investments appear in a company’s balance sheet under the sub-head other current assets.

Explanation:

Interest accrued on investments refers to interest earned but not yet received as of the balance sheet date (e.g., on bonds or fixed deposits). Since the company expects to receive this interest within 12 months, it is treated as a Current asset, specifically under:

Current assets → Other current assets