capital stock is not an asset B. I. patent II. Investment in equity securities for the purpose of controlling the issuing company. The assets which can easily be converted into cash are called current assets. inventory.d. capital stock Correct. Which current liability would be listed We note the following about Apple’s Short Term Assets The cash and cash equivalents in the case of Apple Inc. increased from $ 20,289 Mn to $ 25,913 Mn from 2017 to 2018, respectively. Non-current assets have a useful life of longer than one year. Examples of current assets are cash, accounts receivable, and inventory. The basis for classifying assets as current or noncurrent is the period of time normally required by the accounting entity to convert cash invested in a. receivables back into cash, or 12 months, whichever is longer. Accounting Mcqs. b. accounts receivable. Assets that get easily converted into cash or utilized through the normal operating cycle of the business or within one year (whichever is greater) are current assets. Current liabilities 4,000 Stockholders equity 27,000. Which of the following are included in current assets? Current assets are short-term, liquid assets that are expected to be converted to cash within one fiscal year. There are three key properties of an asset: 1. PLEASE COMMENT BELOW WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION. After current assets, the balance sheet lists long-term assets, which include fixed tangible and intangible assets. A. Currents assets are detrimental to operations of the business, paying vendors, from cash, disposing inventory to customers for receipt of inocme (revenue), you name it. Q 15. Cash Trademark Accounts Receivable IV. It typically includes coins, currencies, funds on deposit with bank, cheques and money orders. Creditors are interested in the proportion of current assets to current liabilities, since it indicates the short-term liquidity of an entity. Formula: Working capital ratio = Current assets/Current liabilities Example – In the books of Company A, the following current liabilities list is shown: Creditors = Rs. This is called cash equivalents. 13,000 Bank overdraft = Rs. 5) Which of the following are current assets? Current Assets: Current assets would consist of all liquid assets in a business, which will be used to cover the net working capital and the business liquidity. accounting mcqs for accountant. However, the portion of the asset base comprising of long term assets varies industry-wise. Which one of the following is classified as an intangible fixed asset? C. Debators. ABC Ltd. has a Current Ratio of 1.5: 1 and Net Current Assets … c. Cash designated for the purchase of tangible fixed assets. Which of the following audit procedures are appropriate to test the VALUATION assertion for non-current assets? B. and C. above. Inventory III. Current assets include items such as cash, accounts receivable, and inventory. These include stock, inventory, fixed deposits, bank balance, prepaid expenses etc. (adsbygoogle = window.adsbygoogle || []).push({}); PakMcqs.com is the Pakistani Top Mcqs website, where you can find Mcqs of all Subjects, You can also Submit Mcqs of your recent test and Take online Mcqs Quiz test. iii. Current assets for the balance sheet. A hotel prepares it balance sheet in USALI recommended format. Stock Tangible Assets Examples include Land, Property, Machinery, Vehicles etc. Stock C. Prepaid insurance D. All of A. d. cash. Average common shares outstanding was 10,000. Non-Current Assets (or Fixed Assets): In order to be a non-current/fixed one, an asset must satisfy the following three characteristics: (i) The asset which has been acquired not for resale; ADVERTISEMENTS: (ii) The asset which has a comparatively long life, […] cash Incorrect. A. ADVERTISEMENTS: Let us make an in-depth study of the non-current and current assets and liabilities. The correct answer is: Assets which are expected to be converted into cash in t Which of the following statements describes current assets? If assets are classified based on their convertibility into cash, assets are classified as either current assets or fixed assets. This is the account used to deposit revenues and pay expenses. Assume the following data: Current assets = $500; Current liabilities = $250; Inventory = $200; Account receivables = $200. Assets A. On a balance sheet, assets will typically be classified into current assets and long-term assets. Stock Average assets 40,000 Total liabilities 9,000. Accounting Mcqs Accounting Mcqs for Preparation of various Test announced by Fpsc, kppsc, Nts, ppsc. / Steven Bragg. accounting mcqs for accountant. Companies need cash to run their day to day operations. Which of the following are/is a current asset? c. marketable securities. Accounting Mcqs for Preparation of various Test announced by Fpsc, kppsc, Nts, ppsc. D. All of A. Examples of Current Assets. They are also always presented in order of liquidity starting with cash. a) Research on market potential, prior to launching a product, can be capitalised b) Applied research, calculated to achieve a stated aim, can be capitalised. 3) Current Type of Assets. Required fields are marked *. However, it is worthwhile to note that not all Tangible Non-Current Assets depreciate in value. Some current assets are expected to be used and converted into cash for less than one year. Resource: Assets are resources that can be used to generate future economic benefits For example, accounts receivable are expected to be collected as cash within one year. Current liabilities on the balance sheet C. Costs related to the manufacture of products D. Costs incurred and expensed during the Which of the following are current assets of a business? Inventories B. … How Current Assets Information is Used Creditors are interested in the proportion of current assets to current liabilities , since it indicates the short-term liquidity of an entity. Comment BELOW with which of the following are current assets ANSWER and ITS DETAIL EXPLANATION sheet in USALI recommended.! That above POSTED which of the following are current assets is WRONG Common stock E ) None of the current. Fixed tangible and intangible assets of those assets is / are CORRECT or less fixed tangible and assets. One of the following are current assets $ 7,000 Net income $.. 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