Question

which of the following is an example of a common current asset line item? accounts payable cash payroll expense

Explanation:

• Accounts Payable is a liability (amount owed to others), not an asset.
• Cash is a current asset as it is money available for use and is expected to be used or converted within a year.
• Payroll Expense is an expense (cost of labor), not an asset. So Cash is the correct example of a current asset line item.

Answer:

B. Cash