Are Trading Securities Current Assets
Trial balance examination question?
XYZ Company trial balance reflected the following account balances as of December 31, 2008 (in thousand of US$):
Accounts receivable, 200; Trading Securities, 100; Accumulated depreciation, 300; Cash and cash equivalents, 150; Inventory, 500; Equipment and furniture, 1,000; Patent, 50; Prepaid expenses, 20; Land held for speculation, 250
In XYZ Company’s December 31, 2008 balance sheet, the current assets total is:
a. $970,000; b. $950,000; c. $870,000; d. $850,000
Accounts to be included in the current assets total, December 31, 2008:
Accounts receivable, $200,000; Trading securities, $100,000; Cash and cash equivalents, $150,000; Inventory, $500,000; Prepaid expenses, $20,000
= $200,000 + $100,000 + $150,000 + $500,000 + $20,000
= $970,000
Answer: a. $970,000
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