Question

Floating assets are also known as

• A. Ficticious
• B. Circulating
• C. Fixed
• D. Intangible

Answer 1

Answer:

B. Circulating

Floating assets are assets that are used in the business for a short period and keep circulating in the normal course of business. Examples: Cash, Stock, Debtors, Bills Receivable. They are also called circulating assets because they change form quickly (e.g., stock → debtors → cash). Other options: Fixed assets: Long-term assets like land, building, machinery. Fictitious assets: Intangible or deferred expenses, e.g., preliminary expenses, which do not have real existence.