Which of the following is the component of current assets?

Question

Quizplus · Accepted Answer

All of the options listed (stock, prepaid expenses, and income earned but not received) are considered components of current assets. Current assets are assets that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of the business, whichever is longer. Stock represents inventory on hand, prepaid expenses are payments made for expenses in advance, and income earned but not received (accrued income) represents revenue that has been earned but has not yet been received in cash, all of which are expected to provide economic benefits within a short period.

Which of the Following Is the Component of Current Assets