An item that can be converted into cash or used up during the normal operating cycle is:
A)a current asset.
B)Revenue.
C)a current liability.
D)a long-term liability.

Question

Quizplus · Accepted Answer

An item that can be converted into cash or used up during the normal operating cycle is known as a current asset. This includes items such as cash, accounts receivable, and inventory which can easily be turned into cash within a year. Revenue is not an item, but rather an inflow of assets resulting from business activities. Current and long-term liabilities refer to amounts owed by the company to others and are not considered assets.

An Item That Can Be Converted into Cash or Used