Cash and other assets that are expected to be converted to cash or sold or used up within one year or less through the normal operations of the business are called:
A) current assets.
B) intangible assets.
C) fixed assets.
D) notes receivable.

Question

Quizplus · Accepted Answer

Current assets are those that are expected to be converted to cash or used up within one year or less through the normal operations of the business. These assets include cash, accounts receivable, inventory, and prepaid expenses. Other types of assets, such as intangible assets and fixed assets, are not expected to be converted to cash within one year through normal operations. Notes receivable may be current or long-term depending on their maturity date.

Cash and Other Assets That Are Expected to Be Converted