Accountancy, asked by shriraminstitut7819, 10 months ago

The term current assets include 1) Debitor 2)machinery 3) Motor vehicle 4) building.

Answers

Answered by krishna210398
0

Answer:

The answer is 2)machinery

Explanation:

current assets represent all of the belongings of a employer that are predicted everyday be with no trouble bought, fed on, used, or exhausted through widespread enterprise operations with twelve months. modern property appear on a corporation's stability sheet, one of the required monetary statements that every day everyday be finished every yr.

contemporary assets would include coins, cash equivalents, bills receivable, stock stock, marketable securities, pre-paid liabilities, and different liquid property. contemporary belongings can also be called present day money owed. present day belongings are critical every day organizations because they can be used every day fund  business operations and every day for the reason that time period is pronounced as a dollar price of all the belongings and assets that may be without problems transformed day-to-day cash in a brief period, it also represents a enterprise’s liquid property.

however, care should every day be taken everyday include best the qualifying property which might be capable of being liquidated at a fair fee over the following one-yr duration. for example, there is a robust likelihood that many usually used speedy-transferring customer goods (FMCG) items produced with the aid of a company can be effortlessly offered over the subsequent 12 months. stock is included in the modern-day assets, however every day be every  day-to-day promote land or heavy equipment, so these are excluded from the modern-day assets.

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Answered by anjalin
0

The term current assets include 1) Debtor.

Explanation:

  • Current assets the assets of a company which are expected to be sold or used as a result of standard business operations over the next year.
  • In simple words, the assets which a company holds and can be easily sold or consumed and further led to the conversion of liquid cash are called current assets.
  • It include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets.
  • Debtors are considered as current assets as their payments are expected to be received from them in the current or present accounting period.
  • Machinery, Motor vehicle and Building all are fixed assets as these all are long-term tangible assets which the firm owns and uses to produce income and is not expected to be used or sold within the current year.
  • Hence, the correct answer among all the options is option 1) Debtor.

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