Question

When income is to be recognised on cash basis by safe trust Bank, a distinction should be made between________
a. Banking and Non- Banking assets
b. Monetary and Non-Banking assets
c. Current and Non- current assets
d. Performing and Non- performing assets​

Answer 1

Answer:

d performing and non performing assets

Answer 2

When income is to be recognised on cash basis by safe trust Bank, a distinction should be made between Performing and Non- performing assets.

The correct option is (d)

• Performing Assets are accounts that do not disclose any problem and carry more than normal risk attached to the business. For all loan facilities that are regular, asset benefits from reserve funds come under Performing assets.

• Non-performing Assets are loans that are not being repaid or serviced through interest payments on time. When interest or other dues to the bank remain unpaid for more than 90 days the entire bank loan automatically turns into a Non-Performing Asset.

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