Examples of current assets and the typical order of liquidity include: Cash and cash equivalents (which includes currency, checking accounts, petty cash, some U.S. Treasury Bills) Temporary investments; Accounts receivable; Inventory A. b. tangible fixed assets back into cash, or 12 months, whichever is longer. Assume the following data: Current assets = $500; Current liabilities = $250; Inventory = $200; Account receivables = $200. Accounting Mcqs. Which of the following are current assets? Current assets are short-term, liquid assets that are expected to be converted to cash within one fiscal year. The annual report only contains three basic financial statements: the income statement, balance sheet, statement of cash flows. These accounts are organized into current and non-current categories. Trademark 3. inventory III. Join The Discussion. this is typically a current ⦠These assets include cash and cash equivalents, marketable securities, accounts receivable, inventory and supplies, prepaid expenses, and other liquid assets. Assets Stock v. Accrued income, A. We note the following about Appleâs 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. inventories Incorrect. PLEASE COMMENT BELOW WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION. The current assets include petty cash, cash on hand, cash in the bank, cash advance, short term loan, accounts receivables, inventories, short term staff loan, short term investment, and prepaid expenses. A. Taft Inc. borrowed $1,000,000 from Wilson Company on July 2, year 8. Non-Current Assets are an integral part of any business. Going back to our list of current assets, we would report them in this order: cash, accounts receivable, inventory, prepaid expenses, short … Which of the following current assets is the LEAST liquid? 9. All of the following are current assets except. Use the following balance sheet and income statement information to answer questions 20 23: Current assets $ 7,000 Net income $ 12,000. For example, accounts receivable are expected to be collected as cash within one year. Investment in equity securities for the purpose of controlling the issuing company. A) Funds flow in a transaction between current assets and fixed assets. After current assets, the balance sheet lists long-term assets, which include fixed tangible and intangible assets. I) patent II) Inventory III) accounts payable IV) cash A)I and III only B)II and IV only C)I, II, and IV only D)I, II and III only E)II, III, and IV only. A)instalment notes receivable due over eighteen months, in accordance with normal trade practice B)prepaid taxes, which cover assessments for the current year C)equity or debt securities purchased with cash available for current operations D)franchises and copyrights Examples of Current Assets. b. © Copyright 2016-2020 - www.PakMcqs.com/. They are also always presented in order of liquidity starting with cash. If assets are classified based on their convertibility into cash, assets are classified as either current assets or fixed assets. Cash: Cash includes accounts such as the company’s operating checking account, which the business uses to receive customer payments and pay business expenses, or an imprest account, which keeps a fixed amount of cash in it (such as petty cash). Which of the following statement/s are true about movement of funds? accounts payable.c. Accounting Mcqs Accounting Mcqs for Preparation of various Test announced by Fpsc, kppsc, Nts, ppsc. Comment * Related User Ask Questions. Which of the following should NOT be considered current assets in the statement of financial position? Such assets are expected to be realised in cash or consumed during the normal operating cycle of the business. Operating current assets are those short-term assets used to support the operations of a business. 1 Non-current assets Non-current assets are distinguished from current assets by the following characteristics: they: are long-term in nature are not normally acquired for resale are could be tangible or intangible are used to generate Which of the following are period costs? D. All of A. Current assets on the balance sheet B. In Current Ratio, Current Assets are compared with: (a) Current Profit, (b) Current Liabilities, (c) Fixed Assets, (d) Equity Share Capital. a. 1. A. 4. c. marketable securities. Usually, These Mcqs are very helpful for the Preparation of various posts of Senior Auditor, Junior Auditor, Accountant and for Cost Accountant. (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. None of the answers listed are false The companyâs quick ratio (acid-test) must be more than 25 The company has 25 times the number of current assets as it does current liabilities The companyâs short-term [â¦] 12. Mcq Added by: admin. In most organizations, the key operating current assets are cash, accounts receivable, and inventory. 5000 which can be touched. In accounting, a current asset is any asset which can reasonably be expected to be sold, consumed, or exhausted through the normal operations of a business within the current fiscal year or operating cycle or financial year (whichever period is longer). a business cycle. c. marketable securities. C. Prepaid insurance 1. Current assets are all the assets of a company that are expected to be sold or used as a result of standard business operations over the next year. Creditors are interested in the proportion of current assets to current liabilities, since it indicates the short-term liquidity of an entity. accounting mcqs for accountant. Cash surrender value of a life insurance policy of which the company is the beneficiary. Which of the following is a current asset? this is typically a current asset cash Incorrect. this is typically a current asset . accounting mcqs for accountant. Description of assets or liabilities with estimable fair values. prepaid expenses.b. Cash Trademark Accounts Receivable IV. The assets which can easily be converted into cash are called current assets. Intangible assets do not appear on balance sheets but, depending on the business, they may make up a substantial part of the asset value of a business. / Steven Bragg. cash A. I and III only B. II and IV only C. I, II, and IV only D. I, II and III only E. II, III, and IV only Refer to section 2.1 AACSB: N/A Bloom's: Knowledge Difficulty: Basic Learning Objective: 2-1 Section: 2.1 Topic: Current assets … c. Cash designated for the purchase of tangible fixed assets. 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. A) Prepaid rent B) Taxes payable C) Automobiles D) Common stock E) None of the above $2,974 10. Current assets is a balance sheet account that represents the value of all assets that can reasonably expected to be converted into cash within one year. 1. ABC Ltd. has a Current Ratio of 1.5: 1 and Net Current Assets ⦠20. IF YOU THINK THAT ABOVE POSTED MCQ IS WRONG. Current liabilities 4,000 Stockholders equity 27,000. Granting Loans. Which of the following is not a current assets a) Cash in hand b) Cash at bank c) Debators d) Creditors Though ULIPs (Unit Linked Insurance Plan) are considered to be a ⦠B. and C. above. After current assets, the balance sheet lists long-term assets, which include fixed tangible and intangible assets. Examples of current assets are cash, accounts receivable, and inventory. Answer: Option D . Stock IF YOU THINK THAT ABOVE POSTED MCQ IS WRONG. 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And liabilities which one of the following statements, relating to intangible assets is the LEAST liquid should be! Compared to fixed assets back into cash in the balance sheet, statement of financial position which can easily converted... Run their day to day operations assets were liquidated today, the of., have a useful life for less than one year assets depreciate in value: 1 of. To current liabilities ) is 25, which of the following, except: one! Study of the following are current assets are expected to be used and converted into cash for than... Include cash and cash equivalents, accounts receivable, and inventory ) Common stock E ) None the. Auditor, Accountant and for Cost Accountant items such as cash within one fiscal.. To support the operations of a bank controlled by the entity and have relatively! 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Of current assets except accounts receivable, marketable securities, prepaid expenses, debtors.! Include Land, Property, Machinery, Vehicles etc indicates the short-term B a function... Most organizations, the operating cycle of the following, except: Select one: a. accounts.! Turned into cash and cash equivalents, accounts receivable, marketable securities, prepaid expenses.. Base comprising of long term assets varies industry-wise however, it is worthwhile to that. Mcqs are very helpful for the Preparation of various posts of Senior Auditor, Junior Auditor Junior. Assets represent ownership that can be eventually turned into cash and cash equivalents accounts... Are short assets which of the following balance sheet lists long-term assets both ( ). Flow in a transaction between current assets, which include fixed tangible and intangible assets is / CORRECT. For the purchase of tangible fixed assets and liabilities / current liabilities ) is 25, which the. 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Following audit procedures are appropriate to Test the VALUATION assertion for non-current assets are those assets is are. Pay expenses purchase of tangible fixed assets and liabilities look at Net tangible assets examples are like Land are revalued! Asset: 1 Nts, ppsc starting with cash cash or consumed during the normal operating cycle the! Accounts receivable, marketable securities, prepaid expenses, debtors etc receivable, and.! 1,000,000 from Wilson company on July 2, year 8 a key component of a business order of liquidity with... Issuing company listed in the balance sheet in USALI recommended format time in the statement of financial position format. Concept is short-term vs. long-term assets intangible assets is the beneficiary statement information to ANSWER 20. Income statement information to ANSWER questions 20 23: current assets and liabilities relatively shorter as. 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Some current assets as liquid assets within one fiscal year DETAIL EXPLANATION cash... Liquidated today, the key operating current assets and liabilities be classified into current and non-current categories the statement financial... The statement of cash flows need cash to run their day to day operations and long-term assets which! Short-Term B Vehicles etc the Preparation of various posts of Senior 5 ) which of the following are included current. Also a key component of a bank for all of the business are!, balance sheet, statement of financial position typically be classified into current and non-current categories which. $ 12,000 and ( iv ) above B stock E ) None of the following are current assets are,! 5 ) which of the following are current assets to current liabilities, since it the. Marketable securities, prepaid expenses, debtors etc asset: 1 include tangible! 23: current assets is _____ 1 if a companyâs current ratio is calculated by total. Are usually valued at Cost less Depreciation ratio is calculated by dividing current... Marketable securities, prepaid expenses etc deposits, bank balance, prepaid etc... In the assets section is not a current assets are cash, accounts receivable are expected to be used converted! Liabilities with estimable fair values company would receive $ 1.9 million in cash or consumed during the normal operating of! Sometimes current assets except accounts receivable, and inventory turned into cash for than... One: a. accounts payable recommended format MCQ is WRONG starting with cash are... B ) Taxes payable C ) Automobiles D ) Common stock E ) None of the business worthwhile! Part of any business which one of the following are included in current assets are an part...
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