Discussion
An asset is classified as current asset when:
(i) it is expected to be realised or intends to be sold or consumed in normal operating cycle of the organisation.
(ii) the asset is held primarily for the purpose of trading.
(iii) it is expected to be realised within twelve months after the reporting period.
(iv) it is non- restricted cash or cash equivalent.
Answer: D
All four conditions classify an asset as current. An asset is current if it is expected to be realised, sold or consumed in the normal operating cycle of the organisation, if it is held primarily for the purpose of trading, if it is expected to be realised within twelve months after the reporting period, or if it is cash or a cash equivalent that is not restricted. Since any one of these conditions is enough and all four are listed, 'All (i), (ii), (iii) and (iv)' is right.
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