Answer to Question #243703 in Accounting for samantha

Question

4. If the normal operating cycle is 8 months to August 30, 2023, and the 12 months after the reporting period will jump to the date of December 31, 2023, when is the threshold of

proving that the asset or liability is current? (Pick between August 30, 2023, and December 31, 2023, only Explain your position.)

Answer 1

The threshold of proving that the asset or liability is current is 30th August 2023, since August is part of normal operating cycle and it is within one financial year