Question

‘Security deposits’ are presented in the balance sheet of the company under the sub-head ______.

Options

• Other Non-Current Assets

• Long-term Loans and Advances

• Current Assets

• Other Current Liabilities

Answer 1

‘Security deposits’ are presented in the balance sheet of the company under the sub-head other non-current assets.

Explanation:

Specifically, security deposits given for a period of more than 12 months from the date of the Balance Sheet are classified as Other Non-Current Assets, for example, security deposits for electricity and telephone. This classification is distinct from Long-term Loans and Advances or Current Assets.