Which of the following is NOT an example of an 'other current asset'?

• A. Interest Receivable
• B. Prepaid Expenses
• C. Accounts Receivable
• D. Short-term Notes Receivable

Answer: (C)

Verified step by step guidance

1. Understand the concept of 'other current assets': These are assets that are expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer, but do not fall under typical categories like cash, accounts receivable, or inventory.
2. Review the examples provided: Interest Receivable, Prepaid Expenses, Accounts Receivable, and Short-term Notes Receivable. Determine which of these items does not fit the definition of 'other current assets'.
3. Recognize that 'Accounts Receivable' is a distinct category of current assets and is not classified as an 'other current asset'. It is a primary current asset that represents amounts owed to the company by customers for goods or services provided on credit.
4. Compare the remaining options: Interest Receivable, Prepaid Expenses, and Short-term Notes Receivable. These items are typically classified as 'other current assets' because they do not fall under the main categories of cash, accounts receivable, or inventory.
5. Conclude that the correct answer is 'Accounts Receivable' because it is not an example of an 'other current asset' but rather a primary current asset category.