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Question
Trade investments appear in a company’s balance sheet under the sub-head ______.
Options
Current Investments
Non-Current Investments
Intangible Assets
Short-term Loans and Advances
MCQ
Fill in the Blanks
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Solution
Trade investments appear in a company’s balance sheet under the sub-head non-current investments.
Explanation:
Trade Investments are investments made by a company in the shares or securities of other companies for the purpose of gaining control or earning returns, and are not intended to be sold within 12 months. Therefore, they are classified in the Balance Sheet under:
Non-current assets → Non-current investments
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