Which of the following items are current assets?
-
A.
Stock, bills receivable, cash and debtors -
B.
Stock, bill payable, cash and debtors -
C.
Stock, bad debt, bills receivable and cash -
D.
Stock, work-in-progress, cash and bills payable
Correct Answer: Option A
Explanation
Current assets include cash and other assets that are expected to be converted to cash within a year. Option A ”Stock, bills receivable, cash and debtors” is correct.
– Stock are goods bought for the purpose of resale
– Bills receivable are incurred as a result of credit sales
– Cash is the available money at hand
– A debtor is a person, company, or other entity that owes money.