Question

Which of the following most likely represent 'current assets'? (Mark all that apply - no partial credit)

A. Recently purchased physical facility

B. Cash

C. Accounts receivable

D. Recently acquired machinery

E. Inventory

Answer 1

Answer -

The following most likely represent current assets -

B. Cash

C. Accounts receivable

E. Inventory

Explanation -

Current assets are those assets that are expected to converted into cash within a year.

In the given case, cash, Accounts receivables and inventory are part of current assets as they can be converted into cash within a year. But recently purchased physical facility and machinary are not current assets as they cwnt ve converted into cash within a year.