which of the following is a current asset?

the method that best matches the pattern of asset use Which of the following items would be least likely to appear in the current liabilities section of a classified balance sheet? Current assets are a category on the asset side of the balance sheet which majorly comprises of cash and bank balance, inventories, account receivables/debtors. Thus, cash reduces in the balance sheet at the time when such expenses are paid at the beginning of the accounting period. For businesses, a capital asset is an asset with a … b. Which of the following is not a current asset? Though, the operating cycle of a business usually represents one year. An decrease in the fixed asset turnover ratio from 3.0 to 2.2 indicates Thus, both gross receivables and allowance for doubtful accounts have to be reduced in such scenarios. Current Assets: Current assets would consist of all liquid assets in a business, which will be used to cover the net working capital and the business liquidity. Current assets for the balance sheet. Cash equivalents are the result of cash invested by the companies in very short-term, interest-earning financial instruments. Accounts receivables are the amounts that a company’s customers owe to it for the goods and services supplied by the company on credit. It gets reversed at a time when the expense is deducted for tax purposes. Expert Answer 100% (1 rating) Previous question Next question Get more help from Chegg. A. A) Short-term investments B) Merchandise inventory C) Prepaid expenses D) Cash E) All of the above are current assets on a classified balance sheet Short-term investments B) Merchandise inventory C) Prepaid Inventory B. Accounts Receivable. 10,000. They will be listed separately as property, plant, and equipment and intangible assets. Current assets include cash and assets that are expected to turn to cash within one year of the balance sheet date. Cash surrender value of a life insurance policy of which the company is the beneficiary. They are also always presented in order of liquidity starting with cash. The company takes 12 months as its operating cycle for bifurcating assets and liabilities into current and non-current. The prepaid expenses form a part of Other Current Assets as per the notes to financial statements given in Nestle’s annual report. Equipment. C. Intangible assets Examples of current assets are cash, accounts receivable, and inventory. Accounts Receivable. Thus, these trading securities are recorded at cost plus brokerage fees once these are acquired. Current Assets List: What are the Current Assets?✓ Current Assets Example ✓ Current Assets Ratios ✓ List: Cash, Equivalents Stock or... https://quickbooks.intuit.com/in/resources/in_qrc/uploads/2019/06/Balance-sheet-explaining-what-are-current-assets-e1561731602928.jpg, Current Assets: Check List, Examples & Meaning %%sep%% %%sitename%%, Bank Balances Other Than Cash and Cash Equivalents, Total outstanding dues of micro-enterprises and small enterprises, Total outstanding dues of creditors other than micro-enterprises and small enterprises, Intuit launches QuickBooks Online Accountant in India For CA's, GST Exemption List For Services: A Detailed Guide, GST Invoice Guide: Components, Formats and Time to Issue, 8 Tips of Marketing For Accountants in India, 5 Ways For Accountants In Dealing With Difficult Customers, HSN Code: Understand HSN Code with GST Rate | HSN Full form, Partnership Firm Registration: All You Need To Know, Shops and Establishments Act – What the Law Says, The Emergency Credit Line Guarantee Scheme, Drafts-On-Hand including remittances in transit, Demand deposits with a maturity period of 3 months, Stocked for the purpose of sale in the normal course of business (finished goods), In the production process and would eventually be sold (work-in-progress), Shortly be consumed in the manufacturing of goods that would be sold eventually (raw material). Going back to our list of current assets, we would report them in this order: cash, accounts receivable, inventory, prepaid expenses, short-term investments, due from affiliates. This is because each unit of inventory has a different cost. Nestle has taken inventories at cost or net realizable value, whichever is lower.

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