How many of the following balance sheet items are classified as current?
Retained earnings
Accounts payable
Plant and equipment
Inventory
Common stock
Bonds payable
Accrued wages payable
Accounts receivable
Preferred stock

Question

Quizplus · Accepted Answer

Current assets are assets that can be converted into cash within one year. Current liabilities are liabilities that are due within one year. Accounts payable, inventory, accrued wages payable, and accounts receivable are all current assets. Bonds payable and preferred stock are not current liabilities because they are not due within one year. Retained earnings, plant and equipment, and common stock are not current assets or current liabilities.

How Many of the Following Balance Sheet Items Are Classified