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.
Inventory is shown under the head 'Current assets' while preparing company's Balance Sheet.
Others are the non current assets of the company.
The sequence of Current Assets in the balance sheet is as follows-
(1) Current investments
(2) Inventories
(3) Trade receivables include bills receivable
(4) Cash and cash equivalents include cash at bank
(5) Short-term loans and advances
(6) Other current assets