Question 3 The following information is for Bright Eyes Auto Supplies Bright Eye

Question

Question 3 The following information is for Bright Eyes Auto Supplies Bright Eyes Auto Supplies Balance Sheet December 31, 2012 Cash Prepaid Insurance Accounts Receivable Inventory Equipment Land Building 20,000 40,000 50,000 70,000 90,000 125,000 Accounts Payable Salaries and Wages Payable Mortgage Payable Total Liabilities $ 65,000 25,000 75,000 $165,000 $100,000 Less Accumulated Owner's Capital 370,000 Depreciation 30,000) 70,000 Trademark Total Assets Total Liabilities and Owner's Equity $535,000 $535,000 The total dollar amount of assets to be classified as current assets is a. $70,000 b. $110,000 c. $180,000 d. $250,000

Explanation / Answer

Current Assets are those part of assets which has small tenure.

Current Assets generally consists of Cash , Cash Equivalents, Inventory, Prepaid expenses etc.

In above balance sheet we have Current assets as

Cash+Prepaid Insurance+Account Receivable+Inventory=$180,000

Hence Option C is correct response

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