Which of the following accounts would be classified as current assets on the balance sheet?
A)Accounts receivable, inventory, cash equivalents.
B)Marketable securities, accounts payable, property, plant and equipment.
C)Prepaid expenses, goodwill, long-term investments.
D)Property, plant and equipment, inventory, goodwill.

Question

Quizplus · Accepted Answer

Current assets are those assets that can be easily converted into cash or used up within a year. Accounts receivable, inventory, and cash equivalents are all assets that can be easily converted into cash or used up within a year, making them classified as current assets on the balance sheet. Marketable securities, property, plant and equipment, and long-term investments are typically classified as non-current assets. Prepaid expenses can be either current or non-current depending on when they will be used, and goodwill is typically classified as an intangible asset.

Which of the Following Accounts Would Be Classified as Current