Question

unds.
(b) Current Asset
(c) An application of Funds
9. Income Tax paid is
(a) Current Liability
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Answer 1

Answer:

Purchase and Sale of Fixed Assets and Profit or Loss on Sale thereon: When any Fixed Asset (i.e. Plant and Machinery, Land and Building, Furniture and Fittings, etc.) is acquired or purchased, the same is treated as an 'Application of Funds'. Similarly, when the same is sold, it is an item of 'Sources of Fund'.

Current liabilities of a company consist of short-term financial obligations that are typically due within one year. ... Examples of current liabilities include accounts payables, short-term debt, accrued expenses, and dividends payable