Match the items of List – I with the items of List – II and indicate the code of correct matching :…
The matching is 1-c, 2-d, 3-a, 4-b. A bank overdraft is a current liability, cash and bank balances are liquid assets, and patents are intangible assets. In traditional…
Choose your answer
Match the items of List – I with the items of List – II and indicate the code of correct matching :
| List – I | List – II |
| 1. Current liabilities | a. Discount on issue of shares |
| 2. Liquid assets | b. Patents |
| 3. Fictitious assets | c. Bank overdraft |
| 4. Intangible assets | d. Cash and bank balances |
Answer and explanation
Correct answer C
The matching is 1-c, 2-d, 3-a, 4-b. A bank overdraft is a current liability, cash and bank balances are liquid assets, and patents are intangible assets. In traditional accounting terminology, an unamortised discount on issue of shares is classified as a fictitious asset rather than a resource with an independent realisable value.
Practice for these exams
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Gujarat SET (GSET)