A firm has $1,300 of cash, equipment worth $35,600, inventory of $14,900, $12,500 worth of patents, and $10,400 of account receivable. What is the value of the total current assets?

Question

Quizplus · Accepted Answer

Current assets are those items that can be converted into cash within one year or less, including cash, accounts receivable, and inventory. Thus, the total current assets in this case would be the sum of the cash, accounts receivable, and inventory. Therefore, the value of the total current assets would be $1,300 + $10,400 + $14,900 = $26,600.

A Firm Has $1,300 of Cash, Equipment Worth $35,600, Inventory