Which of the following items are classified as current assets in a business?

Show Answers

Items (i) and (iv) onlyItems (ii) and (iii) onlyItems (i), (ii), and (iii) combinedItems (ii), (iii), (iv), and (v) collectivelyNone of the above

Explanation

The given items are: (i) Income received in advance, (ii) Stock, (iii) Debtors, (iv) Prepaid expenses, and (v) Accrued income. Among these, stock, debtors, prepaid expenses, and accrued income are considered current assets because they represent resources expected to be converted into cash or used up within a year. Income received in advance is a liability, not an asset. Therefore, option D, which includes items (ii), (iii), (iv), and (v), correctly identifies the current assets.