The following are known as current assets:
i.cash; II)marketable securities; III)receivables; IV)inventories; V)payables
A)I,II,and III only
B)I,II,III,and IV only
C)II,III,IV,and V only
D)III,IV,and V only

Question

Quizplus · Accepted Answer

Current assets are assets that can be easily converted into cash or used up within a year. Cash is a current asset because it is readily available to be used. Marketable securities are current assets because they are easily sold in the market for cash. Receivables are current assets because they represent money owed to the business from customers. Inventories are current assets because they can be sold for cash or used up within a year. Payables are not current assets, but are actually current liabilities because they represent money owed by the business to suppliers or creditors. Therefore, the correct choice is B as it includes all the current assets mentioned.

The Following Are Known as Current Assets