CA Inter P1 · Chapter 9 · Question 1 of 10
Under Schedule III to the Companies Act, 2013, where the normal operating cycle of a company cannot be identified, it is assumed to have a duration of:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) 12 months
Explanation
Schedule III states that where the normal operating cycle cannot be identified, it is assumed to have a duration of 12 months. The operating cycle is used to classify assets and liabilities as current or non-current.
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