Select the correct answer.

These are the accounts in ABC Inc.'s trial balance:

Inventory: $19,000

Bonds Payable: $14,500

Patents: $220,000

Land: $80,000

Accounts Payable: $26,500

Cash: $7,000

Equipment: $150,000

Goodwill: $105,000

Notes Payable: $10,000

Wages Payable: $14,000

Common Stock: $85,000

Accounts Receivable: $13,500

What is the total of the firm's current assets?

A: $32,500

B: $39,500

C: $225,000

D: $35,500

Answer

Current Assets of the firms are

Inventory: $19,000

Cash: $7,000

Accounts Receivable: $13,500

Total = $39500

Explanation

Cash and other assets that are expected to be converted to cash within a year is known as current assets, rest are long term assets, equity and liabilities.

Longterm assets

Patents $220,000

Land: $80,000

Equipment: $150,000

Goodwill: $105,000

Liabilities

Bonds Payable: $14,500

Accounts Payable: $26,500

Notes Payable: $10,000

Wages Payable: $14,000

Equity

Common Stock: $85,000