Asked by neeranjali kallydeen on May 28, 2024
Verified
Which of the following are included in current assets?
A) Inventory
B) Equipment
C) Depreciation
D) Accounts payable
E) Shareholders' equity
Current Assets
Short-term assets that are expected to be converted into cash within one year.
Shareholders' Equity
The residual interest in the assets of a corporation after deducting liabilities, representing the net worth attributable to shareholders.
Inventory
The goods and materials that a business holds for the ultimate goal of resale or processing.
- Recognize components of current assets and their liquidity.
Verified Answer
JK
janaki kadamMay 31, 2024
Final Answer :
A
Explanation :
Inventory is considered a current asset because it is expected to be converted into cash or used up within one year or within the operating cycle of a business, whichever is longer.
Learning Objectives
- Recognize components of current assets and their liquidity.
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