Which of the following items is shown under the head lsquo Non Current Assets rsquo while preparing ...........

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.

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