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JAMB Principles of Accounts 2009 Question 19

Question 19

Final Accounts of a Sole Trader

Which of the following items are current assets?

  1. A.Stock, bills receivable, cash and debtors
  2. B.Stock, bills payable, cash and debtors
  3. C.Stock, bad debt, bills receivable and cash,
  4. D.Stock, work-in-progress, cash and bills payable.
Show the answer and explanation

Answer: A (Stock, bills receivable, cash and debtors)

Explanation

Bills payable is a liability and a bad debt is an expense, so only A lists current assets alone.