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The value of current assets is?

Commerce
WAEC 2016

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
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Correct Answer: Option 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


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