Which of the following are current assets?

I. Cash

II. Trademark

III. Accounts receivable

IV. Notes payable

Question

Which of the following are current assets?

I. Cash

II. Trademark

III. Accounts receivable

IV. Notes payable

BlackTom AI · Accepted Answer

Current assets are assets expected to be converted to cash or consumed in the normal operating cycle (usually within one year), so Cash and Accounts Receivable meet that definition.

1) Relevant concepts
- Current assets: cash or resources expected to be realized, sold, or consumed within one year (e.g., cash, marketable securities, accounts receivable, inventory, prepaid expenses).
- Noncurrent (long-term) assets: resources used over periods longer than one year (e.g., property, plant & equipment, intangible assets like trademarks).
- Liabilities: obligations—notes payable is a liability, not an asset (it can be current or long-term depending on maturity).

2) Step-by-step classification
- I. Cash — clearly a current asset because it is already cash and available for use.
- II. Trademark — an intangible asset representing a legal right; it is a long-term (noncurrent) asset because it provides benefit over multiple years and is not converted to cash within one year.
- III. Accounts receivable — amounts owed by customers, usually collectible within the normal credit period (typically under one year), so this is a current asset.
- IV. Notes payable — represents a promissory obligation the company owes to others; it is a liability, not an asset. Even if the note is short-term, it would be a current liability, not a current asset.

3) Why the correct answer is correct
Only I (Cash) and III (Accounts receivable) are current assets. II is a long-term intangible asset, and IV is a liability. Therefore the only correct combination of current assets listed is I and III.

4) Why other options are incorrect
- "II and III only": includes Trademark (II), which is not a current asset.
- "I, II, and IV only": includes Trademark (II) and Notes Payable (IV); II is noncurrent and IV is a liability.
- "I, III, and IV only": includes Notes Payable (IV), which is a liability, not an asset.
- "II, III, and IV only": includes Trademark (II) and Notes Payable (IV), both incorrect classifications for current assets.

Conclusion: The correct choice is I and III only, which matches the provided answer.

Which of the following are current assets? I. Cash II. Trademark III. Accounts receivable IV. Notes payable单项选择题

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