Current assets are assets which
A)can be used immediately to retire liabilities.
B)are newly acquired.
C)have been converted into cash in the previous year.
D)are intended to be converted into cash within one year.

Question

Quizplus · Accepted Answer

Current assets are assets that are expected to be converted into cash or used up within one year (or operating cycle, whichever is longer). Examples of current assets include cash, accounts receivable, inventory, and prepaid expenses. Their purpose is to provide liquidity and help fund day-to-day operations of the business.

Current Assets Are Assets Which