Which of the following items are current assets?
-
Stock, bills receivable, cash and debtors
- Stock, bill payable, cash and debtors
- Stock, bad debt, bills receivable and cash
- Stock, work-in-progress, cash and bills payable
The correct answer is: 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.