The distinction between a current asset and other assets is based on:
A)how long the asset has been owned.
B)amounts that will be paid to other entities within a year.
C)the ability to determine the current fair value of the asset.
D)when the asset is expected to be converted to cash, or used to benefit the entity.

Question

Quizplus · Accepted Answer

Current assets are those expected to be converted to cash or used up within one year or the operating cycle, whichever is longer.

The Distinction Between a Current Asset and Other Assets Is