Which of the following is a current asset?
A)Cash surrender value of a life insurance policy of which the company is the beneficiary.
B)Investment in equity securities for the purpose of controlling the issuing company.
C)Cash designated for the purchase of tangible fixed assets.
D)Trade instalment receivables normally collectible in eighteen months.

Question

Quizplus · Accepted Answer

Trade instalment receivables normally collectible in eighteen months are considered a current asset as they are expected to be collected within a year or operating cycle, whichever is longer. The other options listed are not current assets; option A is a non-current asset, option B is an investment, and option C is designated for the purchase of non-current assets.

Which of the Following Is a Current Asset