Question

Current Assets include

• A. Furniture
• B. Investment
• C. Goodwill
• D. Debtors

Hint:

Current assets = Assets convertible into cash within one year (e.g., cash, inventory, debtors).

Answer 1

The Correct Option is D

Step 1: Meaning of current assets.
Current assets are short-term assets that can be converted into cash within one year.
They are used to meet day-to-day operational expenses.
Step 2: Examples of current assets.
Cash, bank balance, bills receivable, inventory, and debtors are current assets.
Debtors represent the money owed by customers, which can be collected in the short term.
Step 3: Option analysis.
- (A) Furniture: Wrong, it is a fixed asset.
- (B) Investment: Wrong, long-term investments are not current assets.
- (C) Goodwill: Wrong, it is an intangible asset.
- (D) Debtors: Correct, as they are short-term receivables.
Step 4: Conclusion.
Debtors are included in current assets.