Accounting Multiple Choice Question – 6 February 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

A firm’s current assets are ……….. ?

Select ONE answer:

  1. amounts which it is due to receive within one year of its balance sheet date
  2. its cash and positive bank balances and other assets likely to be converted into cash and bank balances within one year of its balance sheet date as a result of its normal trading operations
  3. the total of its debtors, its stocks and its cash and bank balances
  4. amounts which it is due to receive as a result of credit sales made by the firm within the last year

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 2
3 – current assets can comprise than more than just debtors, stock and cash
4 – current assets can comprise than more than just debtors

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