Which among the following is NOT the current asset?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- Advances received from customers.
Advances received from customers is not a current asset.
Current assets are resources that are expected to be converted into cash or used up within one year. Advances received from customers are actually a liability, because the company owes goods or services to the customer in the future.
OTHER OPTIONS
- Marketable securities – short-term investments, easily convertible to cash.
- Bills receivable – amounts to be received from customers, usually within a short time.
- Debtors – customers who owe money (accounts receivable), typically a current asset.