Which set of items is a complete listing of Alliah's current assets?

• A. Cash, accounts receivable, and inventory
• B. Cash and Accounts Receivable
• C. Inventory only
• D. Land, Cash, and Inventory

Answer: (A)

Current assets are resources the company expects to convert to cash or use up within one year (or the operating cycle, if longer). Cash is the most liquid current asset, accounts receivable are amounts owed to the company that it expects to collect soon, and inventory will be sold to generate cash within the period.

The set that lists cash, accounts receivable, and inventory is complete because it includes all the typical items that qualify as current assets. Missing any of these would make the listing incomplete, and including land introduces a noncurrent asset, since land is not expected to be converted to cash within the year. Therefore, this option is the best fit for a complete listing of current assets.