Question

Which of the following are subgroups under Current Assets? (Choose any two correct options)
a) Deposits(Assets)
b) Cash In Hand
c) Loan(liabilities)
d) Provisions

Answer 1

Answer:

Explanation:

a) Deposits(Assets)  and b) Cash In Hand  are the subgroups under current assets.

Current assets include money, cash equivalents, receivable accounts, inventories of stocks, marketable securities, prepaid liabilities, and other liquid assets. Current assets are essential for companies because they can be used to finance daily company and to pay for continuing operating expenses.

Cash in hand and cash at bank relates to sums held by a company in the form of bills and coins that means the small money or held in a bank in the form of funds on demand such as current accounts and savings accounts.

Answer 2

Deposits (Assets) and Cash In Hand are subgroups under Current Assets.

Answer: Option (a), (b)

Explanation:

The Cash in Hand and Deposits are items that are headed under the subgroup Current Assets. This deposit (asset) comprises of Security Deposits, Fixed Deposits, or even deposit made by the company.

Thus, both items are used for funding day-to-day business operations and even to pay-off the ongoing operating expenses.