How many of the following balance sheet items are classified as a current asset or current liability? •Retained earnings
•Accounts payable
•Plant and equipment
•Inventory
•Common stock
•Bonds payable
•Accrued wages payable
•Accounts receivable
•Preferred stock

Question

Quizplus · Accepted Answer

The current assets and current liabilities are items that are expected to be converted into cash or paid off within one year or one operating cycle (whichever is longer).

The current assets in this list are: inventory, accounts receivable, and accrued wages payable.

The current liabilities in this list are: accounts payable and accrued wages payable.

Therefore, there are four items that are classified as current assets or current liabilities: inventory, accounts receivable, accounts payable, and accrued wages payable.

How Many of the Following Balance Sheet Items Are Classified