An asset should be classified as a current asset even if it is restricted from being exchanged for at least 12 months after the accounting period.

Question

Quizplus · Accepted Answer

An asset should be classified as a current asset only if it is expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer. If it is restricted from being exchanged for at least 12 months, it should not be classified as a current asset.

An Asset Should Be Classified as a Current Asset Even