Question

What are the examples of current assets?

a. Cash, accounts payable, inventory
b. Cash, buildings, and accounts receivables
c. Accounts payables, cash and inventory
d. Cash, accounts receivable and inventory
e. Credit, accounts receivable and inventory

Answer 1

d. Cash, accounts receivable and inventory

Step-by-step explanation:

Current assets are assets that can easily be converted to cash including cash and cash equivalent.

Considering all the options given;

Option a . Cash, accounts payable, inventory has account payable which is a current liabilities. This also applies to option c.

Option b has building as one of the items. Building is an example of a fixed asset which is a non current asset.

Option e has Credit which is usually a liability item when considering the balance sheet.

Hence Option d which has Cash, accounts receivable and inventory is the right option.