A firm’s current assets are ……….. ?
Select ONE answer:
- amounts which it is due to receive within one year of its balance sheet date
- 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
- the total of its debtors, its stocks and its cash and bank balances
- 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:
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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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