A ﬁrm has $300 in inventory, $600 in ﬁxed assets, $200 in accounts receivables, $100 in accounts payable, and $50 in cash. What is the amount of the current assets?

Question

Quizplus · Accepted Answer

Current assets are assets that can be easily converted into cash within one year. In this case, current assets would include inventory, accounts receivable, and cash, but not fixed assets. 
Therefore, the current assets would be $300 (inventory) + $200 (accounts receivable) + $50 (cash) = $550. Choice B is the correct answer because it matches this amount.

A ﬁRm Has $300 in Inventory, $600 in ﬁXed Assets