Chapter 2, Problem 13P

Summary Introduction

To Explain: Whether the items are non-current or current assets.

Introduction:

Non-Current Assets

Non-current assets are ones that cannot be converted into cash within the current financial year and take time for their realization.

Non-Current Liabilities

They are ones that are not obligated to be paid during the current financial year.

Current Assets

They are ones that can be liquidated or converted into cash easily within the current accounting period.

Current Liabilities

They are ones that are obligated to be paid during the current financial year.