Multiple choice

Debtors which are older than six months and sticky are not current assets.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Explanation: Debts are seen by the promptness with which the debtors meet their obligations. When the debts are not recovered for a long time by the seller of goods and services the chances of recovery seems to be bleak. That is why, we treat the debtors which are older than 6 months and above are not recognized as current assets. However, it does not mean that they are not recoverable. .

Keep practicing — related questions