Which of the following items is shown under the head 'Current assets' while preparing company's Balance Sheet?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Inventories
Under Schedule III, the sub-heads of Current Assets are current investments, inventories, trade receivables, cash and cash equivalents, short-term loans and advances and other current assets. Inventories are always treated as current.
Option (1) Investment in Property — Incorrect. Property held as an investment is a non-current investment.
Option (2) Patents — Incorrect. Patents are intangible fixed assets (non-current).
Option (3) Inventories — Correct.
Option (4) Vehicles — Incorrect. Vehicles are tangible fixed assets (non-current).
NCERT (2026-27 edition):
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