If assets are expected to be realized in cash, sold, or consumed within the normal operating cycle of a business or within one year (if the operating cycle is shorter than one year), how are they reported on a classified balance sheet?
A)property, plant, and equipment
B)current assets
C)intangible assets
D)current liabilities

Question

Quizplus · Accepted Answer

Assets that are expected to be realized in cash, sold or consumed within the normal operating cycle of a business or within one year are classified as current assets on a classified balance sheet. This includes items such as cash and cash equivalents, accounts receivable, inventory, and pre-paid expenses.

If Assets Are Expected to Be Realized in Cash, Sold