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    Question

    Identify the item from the list below that is typically

    not considered a current asset due to its nature:
    A Inventory Correct Answer Incorrect Answer
    B Accounts Receivable Correct Answer Incorrect Answer
    C Accounts Payables Correct Answer Incorrect Answer
    D Cash Equivalents Correct Answer Incorrect Answer
    E Short-term Investments Correct Answer Incorrect Answer

    Solution

    Accounts Payables are classified as a current liability rather than a current asset because they represent amounts owed to suppliers or vendors, contrary to assets that are resources owned by a company. They are also called as sundry creditors.

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