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Commerce · Q238

Accounting

Graduate and Post Graduate · Commerce · question 238

Q238

Accounts receivable & inventory are the examples of

A.
Current assets
Answer
B.
Liquid asset
C.
Fixed asset
D.
Capital asset

Answer: Option A

Solution

Answer: Option A
Solution:
Accounts receivable & inventory are the examples of Current assets. Current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets. Current assets are important to businesses because they can be used to fund day-to-day business operations and to pay for the ongoing operating expenses.