Which of the following is the equation form of total current assets?
A) cash + marketable securities + accounts receivable + prepaid expenses + inventory
B) investments + fixed assets − accumulated depreciation + intangible assets
C) notes payable + accounts payable + other items payable + dividends payable + the current portion of long-term debt
D) notes payable + accounts payable + other items payable − dividends payable + the current portion of long-term debt
E) long-term debt + pension fund liabilities + long-term lease obligations

Question

Quizplus · Accepted Answer

Total current assets are the sum of all assets that can be converted into cash quickly within a year. Therefore, the equation form of total current assets includes cash, marketable securities, accounts receivable, prepaid expenses, and inventory.

Which of the Following Is the Equation Form of Total