Multiple choice

Which of the following is a current asset?

  1. Petty cash balance

  2. Machinery

  3. Investment in F.D. of two years

  4. None of these

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Only petty cash balance from above is a current asset. Machinery is a fixed asset. Investment in FD for more than one year is treated as non current assets.  Petty Cash is reported on the balance sheet as a current asset.