A. Stock, bills receivable, cash and debtors
B. Stock, bill payable, cash and debtors
C. Stock, bad debt, bills receivable and cash
D. Stock, work-in-progress, cash and bills payable
Correct Answer:
Option A – Stock, bills receivable, cash and debtors
Explanation
Current assets include cash and other assets that are expected to be converted to cash within a year. Option A ”Stock, bills receivable, cash and debtors” is correct.
– Stock are goods bought for the purpose of resale
– Bills receivable are incurred as a result of credit sales
– Cash is the available money at hand
– A debtor is a person, company, or other entity that owes money.
