For a transport operator, a bus is ...... (i) Current asset, (ii) Fixed asset a. Only (i) B. O

For a transport operator, a bus is ...... (i) Current asset, (ii) Fixed asset a. Only (i) B. Only (ii) c. Either (i) or (ii) d. Both (i) and (ii).explain

 

B because bus is use for generation of income not for sale

 

After disposal will give a fixed assest while earning income on rendering seevices fetching current income

 

For transport operator it's fixed assets (long term investment), although he cn sale it at any time bt can't show it as current assets. Only manufacturer, wholeseller, retailer etc cn show it(bus) as current assets coz bus is stock for them.

 

Suppose you are doing business of furniture then your stock in hand is furniture ,generally nature and according to account type we know furniture and fixtures are fixed asset but for business doing sell and purchase of furniture then it converted main asset that is stock in hand and we know that stock in hand is current asset. Also we can convert it stock in cash within one financial year .