Final answer:
The correct balance sheet presentation for current assets is 'b) Cash, accounts receivable, inventory, and prepaid expenses'. Current assets are shown in order of liquidity on a balance sheet.
Step-by-step explanation:
The correct presentation of current assets on a balance sheet is b) Cash, accounts receivable, inventory, and prepaid expenses. These items are listed in the order of liquidity, meaning how quickly they can be converted into cash. This is the standard way current assets are reported in financial accounting.
On a bank's balance sheet, assets may include cash held in vaults, reserves at the Federal Reserve, loans to customers, and bonds. A bank's balance sheet is a financial statement that provides a snapshot of the bank's financial position at a specific point in time, showing the bank's assets, liabilities, and net worth (also referred to as bank capital).
It's important to note that the money listed as an asset on a bank's balance sheet may not all be physically present in the bank, as banks operate on a fractional reserve system, meaning they keep only a fraction of their deposits as reserves and loan out the majority to earn interest.