Calculate the current assets.

Cash 789
Property, plant & equipment 128,859
Bank loan, 5 years 13,482
Inventory 440
Notes payable, 10 years 10,052
Accounts receivable 1,143
Accounts payable 5,766
Unearned revenue 1,929
Prepaid insurance 8,197
Salary payable 1,110
Patents 141,164

Question

Calculate the current assets.

Cash	789
Property, plant & equipment	128,859
Bank loan, 5 years	13,482
Inventory	440
Notes payable, 10 years	10,052
Accounts receivable	1,143
Accounts payable	5,766
Unearned revenue	1,929
Prepaid insurance	8,197
Salary payable	1,110
Patents	141,164

BlackTom AI · Accepted Answer

To calculate current assets, we first identify which items listed are assets that are expected to be converted to cash or used up within one year. Current assets typically include cash, accounts receivable, inventory, and prepaid expenses.

- Cash: 789 is a cash asset.
- Inventory: 440 is a current asset representing items kept for sale.
- Accounts receivable: 1,143 is a current asset representing amounts owed by customers.
- Prepaid insurance: 8,197 is a current asset representing insurance paid in advance that will be expensed over time.
- Property, plant & equipment (128,859) is a long-term non-current asset and should not be included in current assets.
- Patents (141,164) are an intangible asset, typically considered non-current unless specified otherwise.

Liabilities and other items that are not current assets are excluded from current assets:
- Bank loan, 5 years (13,482) is a long-term liability and not part of current assets.
- Notes payable, 10 years (10,052) is a long-term liability.
- Accounts payable (5,766) and Unearned revenue (1,929) are current liabilities, not assets, so they are not included in current assets.
- Salary payable (1,110) is a current liability.

Now, add up the current assets: 789 (Cash) + 440 (Inventory) + 1,143 (Accounts receivable) + 8,197 (Prepaid insurance) = 10,569.

Therefore, the total current assets amount to 10,569.

BACC011 Week 5: Practice Quiz

Calculate the current assets. Cash 789 Property, plant & equipment 128,859 Bank loan, 5 years 13,482 Inventory 440 Notes payable, 10 years 10,052 Accounts receivable 1,143 Accounts payable 5,766 Unearned revenue 1,929 Prepaid insurance 8,197 Salary payable 1,110 Patents 141,164

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Similar Questions

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What are current assets? BlackTom题目解析

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