Which item is a current asset?
A)Cash - regardless of whether it has a positive or negative balance.
B)Cash equivalents.
C)Cash that will be used to close a plant in eighteen months.
D)Restricted cash that will not be used within the upcoming year.

Question

Quizplus · Accepted Answer

Cash equivalents are considered current assets as they are short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

Which Item Is a Current Asset