The balances of select accounts of Sandra Company as at December 31, 2015 are given below: The insurance has been prepaid for the next half year. What are the total current assets that would be shown on the balance sheet?
A)$10,500
B)$5,700
C)$8,650
D)$6,150

Question

The balances of select accounts of Sandra Company as at December 31, 2015 are given below:  The insurance has been prepaid for the next half year. What are the total current assets that would be shown on the balance sheet?
A)$10,500 
B)$5,700 
C)$8,650 
D)$6,150

Quizplus · Accepted Answer

To calculate the total current assets, we need to add up the balances of all the current assets. 
Cash = $1,150
Accounts Receivable = $2,500
Inventory = $2,000
Prepaid Insurance = $3,000 (Half-year prepaid insurance is considered a current asset)
Total Current Assets = $1,150 + $2,500 + $2,000 + $3,000 = $8,650. 
Therefore, the correct choice is C.

The Balances of Select Accounts of Sandra Company as at December