Question

Debtors, stock and prepaid expenses are the example of _
assets.​

Answer 1

Answer:

Current assets

Explanation:

Current assets include

• stock
• advances given
• Bills receivable
• prepaid expenses
• accrued income
• cash at bank
• cash in hand
• sundry debtors

Answer 2

ANSWER :

★ Current Assets

• ➲ Debtors, stock and prepaid expenses are the example of Current Assets.

• ➲ It is becausethese assets can be converted into cash within a short period of one year.

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MORE TO KNOW :

❍ Assets :-

• ✎ An aseet is anything that is in the possession or is the property of a business entity. It is anything which enables a business entity to generate benefits in future.

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❍ Different tyes of Assets :-

• ✎ Fixed Assets : The assets which are held for continuous use in the business for the purpose of producinh goods or rendering services and are not meant for resale are known as Fixed Assets.

• ✎ Current Assets : The assets which are meant for resale or which can be converted into cash within a short period, i.e., in one year are known as Current Assets.

• ✎ Liquid Assets : The assets which can be converted into cash within a short period are known as Liquid Assets.

• ✎ Tangible Assets : The assets which can be seen, touched and have physical existence are known as Tangible Assets.

• ✎ Intangible Assets : The assets which do not have any physical existence and can not be seen or touched are known as Intangible Assets.

• ✎ Wasting Assets : The assets which get exhausted through being worked or used are known as Wasting Assets.

• ✎ Fictitious Assets : The assets which can not be realized in cash or no further benefits can be derived from the assets are known as Fictitious Assets.

• ✎ Contingent Assets : The asset which is a possible asset that arises from past events and the existence of which will be confirmed only by the occurrence of non-occurrence of one or more uncertain future events not wholly within the control of the business entity is known as a Contingent Asset.