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

查看解析

登录即可查看完整答案

类似问题

Referring to the Balance Sheet printed in Step 22 of the Practical Exam, what is the amount shown for Total current assets?

Cash itself or items that could be quickly turned into cash or will be used within 1 year are called ________.

Calculate current assets. Cash 932 Property, plant & equipment 133,221 Bank loan, 5 years 16,821 Inventory 635 Notes payable, 10 years 11,405 Accounts receivable 1,767 Accounts payable 5,016 Unearned revenue 1,548 Prepaid insurance 6,341 Salary payable 1,618 Patents 188,385

Which of the following are current assets? (Check all that apply.)

Accounts Receivable is classified on the Blank ______.

Which of the following is included within current assets on a balance sheet?

What are current assets? BlackTom题目解析

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单