Question

Which one of the following assets could be described as a current asset?
(a) Stock of goods for resale
(b) Machinery to manufacture goods for resale
(c) Buildings to house the machinery
(d) Land on which the buildings stand​

Answer 1

Answer:

Land is current asset......

Answer 2

From the following assets that could be described as a current asset is (a) Stock of goods for resale.

• Current asset means those assets which is purchased with the intention for selling in near future.

• Current asset are exhausted or used within a period of a year or the normal operation of a corporation.
• Current asset are held for a quick period. Samples of current assets are inventory trade receivables debtors cash and Cash equivalent etc.

• In the given question stock held For resale is a current asset. Whereas machinery land and the building is a fixed asset which shall be used for a period of more than 1 year