Question

Current assets do not include ______.

Options

• Prepaid Expenses

• Inventory

• Goodwill

• Bills Receivable

Answer 1

Current Assets do not include goodwill.

Explanation:

Goodwill is not a current asset. Goodwill is an intangible asset and is classified under non‑current (long‑term) assets, whereas prepaid expenses, inventory and bills receivable are treated as current assets because they are expected to be realised or settled within one year.