Question
Which of the following needs to be excluded from current assets apart from closing stock, to get the balance as liquid assets?
The correct answer is
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.
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Important Questions from Assets & Liabilities
_______ is the most liquid of all assets.
Which one of the following is a revenue expenditure?
A trade mark is an example of ______.
Wages paid for erection of a new plant or machinery are taken as _____.
Which of the following needs to be excluded from current assets apart from closing stock, to get the balance as liquid assets?
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