Question

Included in the category of current assets would be:

1) Cash
2) Accounts receivable
3) Inventory
4) Property, plant, and equipment

Answer 1

Current assets include cash, accounts receivable, and inventory.

Step-by-step explanation:

An asset is an item of value that a firm or an individual owns. Current assets are those that are expected to be converted into cash within one year. Included in the category of current assets are:

1. Cash: This includes physical currency and coins as well as cash equivalents like bank deposits that can be readily accessed.
2. Accounts receivable: These are amounts owed to a business by its customers for goods or services that have been delivered but not yet paid for.
3. Inventory: This refers to the goods a business has produced but has not yet sold, including items sitting in warehouses and on shelves.