20. ABC Ltd. has a Current Ratio of 1.5: 1 and Net Current Assets … For example, accounts receivable are expected to be collected as cash within one year. These are short assets which are liquid and can be converted in to cash within a short span of time i.e. 1. Pretty much all accounting systems separate groups of assets into different accounts. accounting mcqs for accountant. 1 A patent for a new glue purchased for $20,000 by Iota Co Answer: Option D . All of the following are current assets except. Cash Trademark Accounts Receivable IV. this is typically a current … A) Funds flow in a transaction between current assets and fixed assets. These Mcqs are very helpful for the Preparation of various posts of Senior Auditor, Junior Auditor, Accountant and for Cost Accountant. Cash Trademark Accounts Receivable IV. All of the following are current assets except accounts receivable Incorrect. Creditors are interested in the proportion of current assets to current liabilities, since it indicates the short-term liquidity of an entity. 1. Current assets include items such as cash, accounts receivable, and inventory. How Current Assets Information is Used Creditors are interested in the proportion of current assets to current liabilities , since it indicates the short-term liquidity of an entity. 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. Which of the following are current assets of a business? ii. Debtors Current asset accounts include the following: Cash in Checking: Any company’s primary account is the checking account used for operating activities. Cash surrender value of a life insurance policy of which the company is the beneficiary. After current assets, the balance sheet lists long-term assets, which include fixed tangible and intangible assets. Your email address will not be published. 1. Q 15. An alternative expression of this concept is short-term vs. long-term assets. IF YOU THINK THAT ABOVE POSTED MCQ IS WRONG. Comment * Related User Ask Questions. 2000 Bills payable = Rs. current assets include cash and cash equivalents, accounts receivable, marketable securities, prepaid expenses, debtors etc. The book value of the Widget Co.'s assets today is _____ and the market value of those assets is _____. Accounting Mcqs for Preparation of various Test announced by Fpsc, kppsc, Nts, ppsc. 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 Granting Loans. However, the portion of the asset base comprising of long term assets varies industry-wise. On a balance sheet, assets will typically be classified into current assets and long-term assets. Which of the following current assets is the LEAST liquid? Your email address will not be published. Solution for All of the following are current assets excepta. Operating current assets are those short-term assets used to support the operations of a business. Which of the following are/is a current asset? Accounting Mcqs. Which current liability would be listed Going through the definition of the current ratio which is all about how much current assets are available to meet the company’s short-term debt (current liabilities), you arrive the following formula to calculate the current ratio. A. This is the account used to deposit revenues and pay expenses. 5) Which of the following are current assets? accounts payable IV. Tangible Assets Examples include Land, Property, Machinery, Vehicles etc. 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. I. patent II. D. Creditors. Current and fixed assets usually fall into the category of tangible 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). Assets which physically exist i.e. this is typically a current asset . Use the following balance sheet and income statement information to answer questions 20 23: Current assets $ 7,000 Net income $ 12,000 Current liabilities 4,000 Stockholders equity 27,000 Average assets 40,000 Total liabilities capital stock Correct. Required fields are marked *. The Widget Co.'s current balance sheet shows net fixed assets of $2,500,000, current liabilities of $1,375,000, and net working capital of $725,000. accounts payable.c. Formula: Working capital ratio = Current assets/Current liabilities Example – In the books of Company A, the following current liabilities list is shown: Creditors = Rs. D. (ii),(iii),(iv) and (v) above. Accounting Mcqs for Preparation of various Test announced by Fpsc, kppsc, Nts, ppsc. 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. Accounting Mcqs Accounting Mcqs for Preparation of various Test announced by Fpsc, kppsc, Nts, ppsc. The current ratio is calculated by dividing total current assets by total current liabilities. The correct answer is: Assets which are expected to be converted into cash in t Which of the following statements describes current assets? d. cash. Your email address will not be published. ADVERTISEMENTS: Let us make an in-depth study of the non-current and current assets and liabilities. i. This is called cash equivalents. Principles of Accounting, Accounting Equation, Analyzing & Classifying Transaction, Journal, Ledger, Banking Transactions, Cash book and Bank Reconciliation Statement, Bill of Exchange, Capital & Revenue, Rectification of Errors, Final Accounts, Adjustments. A) Prepaid rent B) Taxes payable C) Automobiles D) Common stock E) None of the above $2,974 10. Current assets are the group of liquidity assets or resources controlled by the entity and have a useful life for less than one year. Trademark 3. Assets which are not expected to be converted into cash in the short-term B. A current asset is one that has a useful life of one year or less. A. Sundry Debtors All the basic and core functions are done with current assets. Explore answers and all related questions . capital stock is not an asset a) Research on market potential, prior to launching a product, can be capitalised b) Applied research, calculated to achieve a stated aim, can be capitalised. Which of the following are current assets? These accounts are organized into current and non-current categories. C. (i),(ii) and (iii) above Both (ii) and (iii) above C. Debators. Which of the following are current assets? b. accounts receivable. Current assets are a category on the asset side of the balance sheet which majorly comprises of cash and bank balance, inventories, account receivables/debtors. These assets include cash and cash equivalents, marketable securities, accounts receivable, inventory and supplies, prepaid expenses, and other liquid assets. accounts receivable B) Funds flow in a transaction between current asset and capital C) Funds Economic Value: Assets have economic value and can be exchanged or sold. The basis for classifying assets as current or noncurrent is the period of time normally required by the accounting entity to convert cash invested in a. receivables back into cash, or 12 months, whichever is longer. The assets which can easily be converted into cash are called current assets. Cash in hand. 5) Which of the following are current assets? Assets A. Mcq Added by: admin. 3-Current assets include all of the following, except: Select one: a. accounts payable. Principles of Accounting, Accounting Equation, Analyzing & Classifying Transaction, Journal, Ledger, Banking Transactions, Cash book and Bank Reconciliation Statement, Bill of Exchange, Capital & Revenue, Rectification of Errors, Final Accounts, Adjustments. According to IAS 38 Intangible assets, which of the following are intangible non-current assets in the financial statements of Iota Co? Accounting Mcqs. a business cycle. Receive $ 1.9 million in cash or consumed during the course of.... Financial statements: the income statement, balance sheet, statement of cash flows the non-current and current by. Presented in order of liquidity assets or resources controlled by the entity and have a useful life of than... 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