Accounting JAMB

Which of the following items are current assets?

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.

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