Doubts

SOLUTION It is the amount which a company has received from applicants but shares are not alloted till the date of Balance Sheet.

SOLUTION A deferred tax liability arises when Accounting Income is more than Taxable Income.

SOLUTION A deferred tax asset arises when Accounting Income is less than Taxable income.

SOLUTION Deferred Tax is difference between tax on Accounting Income and Taxable Income.

SOLUTION Trade Payables refers to the amount payable against goods purchased or services received in the normal course of business.

SOLUTION Trade Receivables refers to the amount receivable against goods sold or services rendered in the normal course of business.

SOLUTION Non-Current Asset.

SOLUTION If Operating Cycle cannot be determined, it is assumed to be a period of 12 months.

SOLUTION ‘Operating Cycle’ is the time between the acquisition of assets for processing and their realisation in Cash and Cash Equivalents.