Question

Which of the following items is shown under the head ‘Current Assets’ while preparing the Balance Sheet of a company?

Options

• Trade Investment

• Underwriting Commission

• Inventories

• Livestock

Answer 1

Inventories

Explanation:

Inventories are shown under Current Assets because they are expected to be sold or used within the company’s operating cycle (usually 12 months). This includes raw materials, work-in-progress, and finished goods. Other options like trade investments and livestock are non-current assets, while underwriting commission is an expense.