Which of the following needs to be excluded from current assets apart from closing stock, to get the balance as liquid assets?
Prepaid expenses
The correct answer is option 1. Prepaid expenses need to be excluded from current assets as they represent payments made in advance for services or goods not yet consumed, and are not liquid assets.
Important Questions from Assets & Liabilities
The freight and insurance paid for acquiring goods or for making them saleable is ________.
Which of the following is NOT regarded as a capital expenditure?
Which concept enables the accountant to carry forward the values of assets and liabilities from one accounting period to the other without asking the question about usefulness and worth of the assets and recoverability of the receivables?
Which of the following is NOT regarded as a revenue expenditure?
Which one of the following is a revenue expenditure?
