Which set of items below includes current assets?
A)Accounts receivable,net income,inventory,and dividends
B)Cash,accounts receivable,capital stock,and sales
C)Net income,cash,office supplies,and inventory
D)Cash,accounts receivable,inventory,and office supplies

Question

Quizplus · Accepted Answer

Current assets are assets that are expected to be converted into cash within a year or less. The items in option D (cash, accounts receivable, inventory, and office supplies) are all examples of current assets. Option A includes net income and dividends, which are not assets, and option B includes capital stock, which is a form of equity and not an asset. Option C includes net income, which is not an asset.

Which Set of Items Below Includes Current Assets