Question

Which of the following is a part of Asset group 'Current Assets' in account group of Assets?

Hint:

In accounting software, predefined groups categorize accounts. While 'Duties and Taxes' often relate to liabilities, remember it can also house related asset accounts like input tax credits receivable or prepaid taxes, which fall under Current Assets.

Answer 1

In many accounting software grouping structures (like Tally), 'Duties and Taxes' primarily handles liabilities related to taxes (like GST payable, TDS payable). However, it can also include receivables or advances related to taxes (like Input Tax Credit receivable, Advance Tax paid, Prepaid Taxes) which would fall under Current Assets. Let's analyze other options: \begin{itemize} \item[(B)] Miscellaneous Expenditures: Often grouped under Non-Current Assets (if treated as deferred/fictitious before write-off) or expenses. Not typically a standard Current Asset sub-group. \item[(C)] Reserves \& Surplus: Part of Shareholders' Funds under Equity and Liabilities. \item[(D)] Direct Expenses: Part of the Trading or Income Statement, not the Balance Sheet asset groups. \end{itemize} Considering standard groupings and the possibility of tax receivables/prepaids, 'Duties and Taxes' is the most plausible option that can contain elements classified under Current Assets.