JAMB Accounts Principles of Accounts 2018 Paper

Concept:Current assets are short-term resources that a business can convert to cash, sell, or use up within one year.Explanation:From the given balance sheet, the items classified as current assets are prepaid expenses, stock (inventory), debtors, and the cash balance.Do not include fixed assets because they are long-term resources.Add the current asset values together:Current assets $=$ Prepaid expenses $+$ Stock $+$ Debtors $+$ Cash balanceCurrent assets $= 290 + 4{,}500 + 4{,}956 + 905$Current assets $= 10{,}651$Answer:The value of current assets is $\mathrm{N}10{,}651$.Therefore, the correct option is B.