The basis for classifying assets as current or non-current is conversion to cash within
A) the accounting cycle or one year, whichever is shorter.
B) the accounting cycle or one year, whichever is longer.
C) the operating cycle or one year, whichever is longer.
D) the operating cycle or one year, whichever is shorter.

Question

Quizplus · Accepted Answer

The basis for classifying assets as current or non-current is their conversion to cash within the operating cycle or one year, whichever is longer. This allows for a more accurate reflection of an asset's liquidity.

The Basis for Classifying Assets as Current or Non-Current Is