Question

Which of the following are current assets of a business?
(i) Income received in advance
(ii) Stock
(iii) Debtors
(iv) Pre-paid expenses
(v) Accrued income
The correct answer is?

• A. (i) and (iv) of the above
• B. (ii) and (iii) of the above
• C. (i), (ii) and (iii) of the above
• D. (ii), (iii), (iv) and (v) of the above

Answer 1

The correct option is D (ii), (iii), (iv) and (v) of the above

Current Assets are those assets which arises during the course of business. These are short assets which are liquid and can be converted in to cash within a short span of time i.e. a business cycle.

Below are the example of current assets:

ii) Stocks

iii) Debtors

iv) Prepaid Expense

v) Accrued Income