Current Assets includes

A. Cash

B. Bank

C. Creditors

D. Loan (Short term)

E. Short term investments

Choose the correct answer from the options given below:

A, B, C only

The correct answer is option (1) : A, B, C only

Current assets include cash, bank, inventory (raw materials, work in process, finished goods, spares etc) and accounts receivable (or trade debtors). Current assets comprise items that would get converted in to cash in the short-run, say, within the normal operating cycle (or cash conversion cycle) of the business like short term investments.

Creditors and short term loans are current liabilities.

Current liabilities represent short-term source of funds and are expected to fall due or mature for payment in a short period, generally within a year. These typically consist of payables to vendors and service providers, employees, other short term borrowings and provisions.