The principal short-term assets are:
I. Cash, II) Accounts receivable,
III. Inventories, and
IV. Accounts Payable
A) I only
B) I and IV only
C) I, II, and III
D) IV only

Question

Quizplus · Accepted Answer

The principal short-term assets are usually considered to be cash, accounts receivable, and inventories. These are assets that a company expects to turn into cash relatively quickly, typically within a year or less. Accounts payable, on the other hand, is a liability, not an asset, and represents money that the company owes to its suppliers. Therefore, the correct answer is C - I, II, and III.

The Principal Short-Term Assets Are