A. Explore answers and all related questions . 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. … July 05, 2019. 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. Which of the following should NOT be considered current assets in the statement of financial position? Related questions. B. 1. Accounting Mcqs for Preparation of various Test announced by Fpsc, kppsc, Nts, ppsc. Use the following balance sheet and income statement information to answer questions 20 23: Current assets $ 7,000 Net income $ 12,000. Required fields are marked *. After current assets, the balance sheet lists long-term assets, which include fixed tangible and intangible assets. 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. These accounts are organized into current and non-current categories. Current assets would consist of all liquid assets in a business, which will be used to cover the net working capital and the business liquidity. These Mcqs are very helpful for the Preparation of various posts of Senior accounts payable IV. Which of the following is not a current assets. accounting mcqs for accountant. 3-Current assets include all of the following, except: Select one: a. accounts payable. Current assets are the group of liquidity assets or resources controlled by the entity and have a useful life for less than one year. Pre-paid expenses 13,000 Bank overdraft = Rs. A. Sundry Debtors iv. Solution for All of the following are current assets excepta. accounting mcqs for accountant. current assets include cash and cash equivalents, accounts receivable, marketable securities, prepaid expenses, debtors etc. 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. Inventories B. All the basic and core functions are done with current assets. Which of the following statement/s are true about movement of funds? Accounting Mcqs for Preparation of various Test announced by Fpsc, kppsc, Nts, ppsc. Which of the following is a current asset? These Mcqs are very helpful for the Preparation of various posts of Senior Auditor, Junior Auditor, Accountant and for Cost Accountant. Both (i) and (iv) above B) Funds flow in a transaction between current asset and capital C) Funds accounts payable IV. Cahs Equivalents may include commercial paper, money market mutual funds, bank certificate of deposits and treasur… Average assets 40,000 Total liabilities 9,000. Non-Current Assets (or Fixed Assets): In order to be a non-current/fixed one, an asset must satisfy the following three characteristics: (i) The asset which has been acquired not for resale; ADVERTISEMENTS: (ii) The asset which has a comparatively long life, […] The annual report only contains three basic financial statements: the income statement, balance sheet, statement of cash flows. 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. b. accounts receivable. Current assets for the balance sheet. inventories Incorrect. Here, the operating cycle means the time it takes to Which of the following statements, relating to intangible assets is / are correct? Which of the following are/is a current asset? We note the following about Apple’s 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. 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. 2000 Bills payable = Rs. C. Prepaid insurance Cash Trademark Accounts Receivable IV. These Mcqs are very helpful for the Preparation of various posts of Senior Auditor, Junior Auditor, Accountant and for Cost Accountant. Current assets include items such as cash, accounts receivable, and inventory. However, it is worthwhile to note that not all Tangible Non-Current Assets depreciate in value. Inventory III. Cash Trademark Accounts Receivable IV. Economic Value: Assets have economic value and can be exchanged or sold. Tangible Assets Examples include Land, Property, Machinery, Vehicles etc. (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. Companies need cash to run their day to day operations. Which of the following are current assets of a business? Your email address will not be published. They are also always presented in order of liquidity starting with cash. Cash surrender value of a life insurance policy of which the company is the beneficiary. Current assets are also a key component of a company's working capital and the current ratio. 9. Required fields are marked *. A) Prepaid rent B) Taxes payable C) Automobiles D) Common stock E) None of the above $2,974 10. Which of the following audit procedures are appropriate to test the VALUATION assertion for non-current assets? Examples of Current Assets. 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). According to IAS 38 Intangible assets, which of the following are intangible non-current assets in the financial statements of Iota Co? accounts payable.c. 1 A patent for a new glue purchased for $20,000 by Iota Co / Steven Bragg. c. marketable securities. a business cycle. Debtors B. and C. above. Which of the following are current assets? Accounting Mcqs. In most organizations, the key operating current assets are cash, accounts receivable, and inventory. Answer: Option D . After current assets, the balance sheet lists long-term assets, which include fixed tangible and intangible 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). B. 5) Which of the following are current assets? 20. Current asset accounts include the following: Cash in Checking: Any company’s primary account is the checking account used for operating activities. Assets which are not expected to be converted into cash in the short-term B. this is typically a current asset . Granting Loans. Cash C. Accounts receivable D. Net receivables 2. D. Creditors. For example, accounts receivable are expected to be collected as cash within one year. v. Accrued income, A. These assets include cash and cash equivalents, marketable securities, accounts receivable, inventory and supplies, prepaid expenses, and other liquid assets. Which current liability would be listed B. 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 Which of the following are included in current assets? Which of the following are current assets? capital stock Correct. Both (ii) and (iii) above Investment in equity securities for the purpose of controlling the issuing company. 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 this is typically a current … Examples of Current Assets. Non-current assets have a useful life of longer than one year. A hotel prepares it balance sheet in USALI recommended format. capital stock is not an asset 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. i. Which of the following current assets is the LEAST liquid? 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 Going back to our list of current assets, we would report them in this order: cash, accounts receivable, inventory, prepaid expenses, short … Current and fixed assets usually fall into the category of tangible assets. A. Sundry Debtors B. Examples of current assets are cash, accounts receivable, and inventory. These include stock, inventory, fixed deposits, bank balance, prepaid expenses etc. None of the answers listed are false The company’s 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 company’s short-term […] There are three key properties of an asset: 1. The book value of the Widget Co.'s assets today is _____ and the market value of those assets is _____. Which of the following are included in current assets? A. Current Assets vs. Non-current Assets Current assets are assets that are primarily held for trading or which are expected to be sold, used up or otherwise realized in cash within the greater of a year or one business operating cycle, after the reporting period. D. (ii),(iii),(iv) and (v) above. A. D. All of A. This is called cash equivalents. 1. Which one of the following is classified as an intangible fixed asset? d. cash. However, the portion of the asset base comprising of long term assets varies industry-wise. These Mcqs are very helpful for the Preparation of various posts of Senior Auditor, Junior Auditor, Accountant and for Cost Accountant. accounting mcqs for accountant. Notes Payable a) Il and IIl only b) I and Ill only c) I, lI, and IV only d) I, IlI, and IV only e) II, II, and IV only mexal ol ( 6) Which of the following are included in current liabilities? Description of assets or liabilities with estimable fair values. Which of the following is not a primary function of a Bank? 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. Current assets are always the first items listed in the assets section. 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