Hsu Company has eight major section headings in its balance sheet, which include Current Assets, Long-Term Investments, Property, Plant, and Equipment, Intangible Assets, Current Liabilities, Long-Term Liabilities, and Shareholders' Equity. Below are some of the balance sheet accounts for Hsu:
1.
$\begin{array}{llll}
\text { 1. Dividends Payable } & \text { 7. } \text { Wages Payable } \
\text { 2. } \text { Prepaid Rent } & 8 . \text { Deferred Revenues } \
\text { 3. } \text { Trademarks } & 9 . \text { Accumulated Depreciation - } \
\text { 4. } \text { Bonds Payable } & \text { Building } \
\text { 5. Investment Funds for Plant } & 10 . \text { Accounts Receivable } \
\text { Expansion } & 11 . \text { Accounts Payable } \
\text { 6. Inventories } & &
\end{array}$
Which of these would be found under the heading "Current Assets"?
A)2,10
B)2,6,8,10
C)2,6,10
D)2,5,10

Question

Hsu Company has eight major section headings in its balance sheet, which include Current Assets, Long-Term Investments, Property, Plant, and Equipment, Intangible Assets, Current Liabilities, Long-Term Liabilities, and Shareholders' Equity. Below are some of the balance sheet accounts for Hsu:
1.
$\begin{array}{llll}
\text { 1. Dividends Payable } & \text { 7. } \text { Wages Payable } \
\text { 2. } \text { Prepaid Rent } & 8 .  \text { Deferred Revenues } \
\text { 3. }  \text { Trademarks } & 9 .  \text { Accumulated Depreciation - } \
\text { 4. }  \text { Bonds Payable } &  \text { Building } \
\text { 5. Investment Funds for Plant } & 10 .  \text { Accounts Receivable } \
\text { Expansion } & 11 .  \text { Accounts Payable } \
\text { 6. Inventories } & &
\end{array}$
Which of these would be found under the heading "Current Assets"?
A)2,10
B)2,6,8,10
C)2,6,10
D)2,5,10

Quizplus · Accepted Answer

Accounts 2 (Cash and Cash Equivalents), 6 (Accounts Receivable), and 10 (Inventory) are all typical current assets and would be included under the Current Assets heading in the balance sheet. Accounts 8 (Prepaid Expenses) would also be a current asset, but it is not listed as an option in the answer choices. Therefore, the best choice is C, which includes all three of the current assets listed.

Hsu Company Has Eight Major Section Headings in Its Balance