Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

Identify the correct sequence of current assets in company's Balance Sheet?

A. Bills Receivables
B. Cash & cash equivalents
C. Short-term loans & advances
D. Inventories
E. Current Investments
Choose the correct answer from the options given below:

Options:

C, A, B, E, D

D, C, E, A, B

B, D, E, C, A

E, D, A, B, C

Correct Answer:

E, D, A, B, C

Explanation:

* EQUITY AND LIABILITIES
1) Shareholder’s Funds (a) Share Capital (b) Reserves and Surplus (c) Money received against share warrants
2) Share Application money pending allotment
3) Non-current Liabilities (a) Long-term borrowings (b) Deferred tax liabilities (net) (c) Other long-term liabilities (d) Long-term provisions
4) Current Liabilities (a) Short-term borrowings (b) Trade payables (c) Other current liabilities (d) Short-term provisions
* ASSETS
1) Non-Current Assets
(a) Fixed assets
       (i) Tangible assets
       (ii) Intangible assets
       (iii) Capital work-in-progress
       (iv) Intangible assets under development
(b) Non-current investments (c) Deferred tax assets (net) (d) Long-term loans and advances (e) Other non-current assets
2) Current Assets (a) Current investments (b) Inventories (c) Trade receivables (d) Cash and cash equivalents (e) Short-term loans and advances (f) Other current assets