Question

    When can income be recognized on accounts where a

    moratorium has been granted for interest repayment?
    A Only if the account is classified as 'standard' Correct Answer Incorrect Answer
    B Only if the account is classified as 'non-performing' Correct Answer Incorrect Answer
    C Only if the account is government guaranteed Correct Answer Incorrect Answer
    D Only if the account is secured by gold ornaments and jewellery Correct Answer Incorrect Answer
    E Only if the account is related to agricultural loans. Correct Answer Incorrect Answer

    Solution

    According to the given information, income may be recognized on accounts where a moratorium has been granted for interest repayment, but it should be done only if the accounts continue to be classified as 'standard'. This means that if the account is not classified as 'standard', income recognition cannot take place.

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