use the following information relating to Bala enterprises to anwser the question
N
premises
32,000
motor vehicle
15,000
debtors
15,000
stock
20,000
creditors
10,000
The value of current assets is?
A. N35,000 B. N32,000 C. N25,000 D. N10,000
Correct Answer: A
Explanation
Current assets are balance sheet assets that can be converted to cash within one year or less. Accounts that are considered current assets include cash and cash equivalents, marketable securities, accounts receivable, inventory, prepaid expenses, and other liquid assets. current assets = debtors + stock 15,000 + 20,000 = 35,000
