Question

tion 13
business has $1,000 in cash, $5,000 in accounts receivable, and $2,000 in accounts payable. what is the businesss total current assets?
$4,000
$6,000
$3,000
$8,000
previous

Explanation:

Step1: Identify current assets

Current assets include cash and accounts receivable (accounts payable is a liability, not an asset).
Cash = $1,000, Accounts Receivable = $5,000.

Step2: Calculate total current assets

Total Current Assets = Cash + Accounts Receivable = $1,000 + $5,000 = $6,000.

Answer:

$6,000 (corresponding to the option with $6,000, e.g., if options are labeled, it would be the one like "B. $6,000" depending on original labeling)