Balance sheet (Extract)Creditors #7,940 Prepaid expenses ₦290 Accrual expenses ₦323 Stock #4,500 Cash balance #4,956 Debtors ₦905The value of the current as...

Answer Details

The current assets are assets that can be easily converted into cash within a year. In this balance sheet extract, the current assets include the following items: 1. Prepaid expenses: This refers to expenses that have been paid in advance, such as prepaid rent or insurance. Its value is ₦290. 2. Accrual expenses: This refers to expenses that have been incurred but not yet paid, such as salaries or rent. Its value is ₦323. 3. Stock: This refers to inventory or goods that are held for sale. Its value is #4,500. 4. Cash balance: This refers to the amount of cash that the company has on hand. Its value is #4,956. 5. Debtors: This refers to amounts that are owed to the company by customers for goods or services that have been provided. Its value is ₦905. To find the total current assets, we add up the values of these items: Current assets = Prepaid expenses + Accrual expenses + Stock + Cash balance + Debtors Current assets = ₦290 + ₦323 + #4,500 + #4,956 + ₦905 Current assets = #10,651 Therefore, the correct answer is option B: #10,651.