PRC-1 · Chapter 1 · Question 4 of 100
Which of the following items would normally be classified as a 'current asset' in the statement of financial position of a manufacturing company?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Trade receivables expected to be settled in 60 days
Explanation
Current assets are those assets that provide economic benefits in the short term, usually within one year. Trade receivables, inventory, and cash are standard examples of current assets.
More Accounting Basics MCQs
- Q6According to the conceptual framework of accounting, which of the following is the most accurate definition of an asset?
- Q7'Crescent Traders' repaid a bank loan of Rs. 200,000 via an online bank transfer. What is the overall impact of this transaction on the…
- Q8The accounting practice of ensuring that expenses related to revenue are reported in the exact same period when the revenue is recognized…
- Q9In the double-entry bookkeeping system, a credit entry will inherently result in an increase in which of the following types of accounts?
- Q10Unless there is an intention to liquidate the business, financial statements are prepared on the assumption that the enterprise will…