Question
Mandla’s bakery is known for its unique customized cakes and pastries. Recently the business has been booming and just signed a large contract for regular deliveries. However, with increased orders comes a growing need of ingredients like flour, sugar, and fresh berries. On top of that, some larger customers are behind on their payments. Mandla realizes that, to keep the bakery running smoothly and fulfill the new orders, he needs to turn his baked goodies into cash quickly to keep the production line moving and meet urgent financial needs. Identify the category of assets Mandla needs to focus on to keep the bakery running smoothly and fulfill new orders
A.
Current assets
B.
Shares in another business
C.
Fixed assets
D.
Investments
A.
Current assets
B.
Shares in another business
C.
Fixed assets
D.
Investments
Answers
GPT-4o mini
A. Current assets
Mandla needs to focus on current assets to keep the bakery running smoothly and fulfill new orders. Current assets include cash, inventory (like ingredients), and accounts receivable, which are essential for managing day-to-day operations and meeting immediate financial needs.
Mandla needs to focus on current assets to keep the bakery running smoothly and fulfill new orders. Current assets include cash, inventory (like ingredients), and accounts receivable, which are essential for managing day-to-day operations and meeting immediate financial needs.