Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

Write the correct sequential order of various sub heads under Current Assets.

(A) Inventories
(B) Trade Receivables
(C) Cash and Cash equivalents
(D) Other Current Assets
(E) Current Investments

Choose the correct answer from the options given below:

Options:

(A), (B), (C), (D), (E)

(B), (C), (A), (D), (E)

(D), (B), (A), (C), (E)

(E), (A), (B), (C), (D)

Correct Answer:

(E), (A), (B), (C), (D)

Explanation:

The correct answer is Option (4) - (E), (A), (B), (C), (D).

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