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Which of the following items is shown under the head ‘Non-Current Assets’ while preparing the Balance Sheet of a company?
Underwriting Commission
Current Investment
Inventory
Patents
- Option 1: Underwriting Commission
- Represents the fee paid to financial institutions for their services in underwriting.
- Usually categorized as an expense or deferred cost, depending on when the service occurs.
- Not typically listed under 'Non-Current Assets.'
- Option 2: Current Investment
- Investments that a company expects to liquidate within a year.
- Listed under 'Current Assets,' not 'Non-Current Assets.'
- Option 3: Inventory
- Consists of goods available for sale or in the production process.
- Listed under 'Current Assets' as they are expected to be sold within a year.
- Option 4: Patents
- Intangible assets that provide exclusive rights to a company for its inventions.
- Listed under 'Non-Current Assets' as they benefit the company for many years.
- This option is the correct choice.
By: santosh ProfileResourcesReport error
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