An example of a current asset is
A)paid-in capital.
B)equipment.
C)accounts receivable.
D)retained earnings.
E)accounts payable.

Question

Quizplus · Accepted Answer

Accounts receivable represents money that is owed to a company by its customers for goods or services that have already been provided. It is a current asset because it is expected to be collected within one year. Paid-in capital and retained earnings are equity accounts, not current assets. Equipment is a fixed asset, and accounts payable is a current liability.

An Example of a Current Asset Is