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sweet [91]
3 years ago
7

Use the information in the adjusted trial balance presented below to calculate current assets for Wicked Wicker Company:

Business
1 answer:
frozen [14]3 years ago
7 0

Answer:

Current Asset = $50,000

Explanation:

Current asset is the asset that can be converted to cash within a year or a short period.

Wicked Wicker Company

Current Assets

Cash                                    $  26,000

Accounts receivable               17,000

Prepaid insurance               <u>     7,000</u>

Total current assets            $50,000

Cash is the most liquid asset, so it is a current asset. Accounts receivable can also be collected within a year. So, it is also an existing asset. Insurance is taken for one year in advance; hence, it is a current asset.

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