Current assets are:
A)all assets except inventory.
B)all assets that provide benefits extending beyond one year.
C)cash, accounts receivable, and buildings.
D)all assets that are expected to be converted to cash in the near future.

Question

Quizplus · Accepted Answer

Current assets are those assets that are expected to be converted to cash or used up within one year or the operating cycle of the business, whichever is longer. This would include assets such as cash, accounts receivable, inventory, and short-term investments. Buildings, on the other hand, would be considered a long-term asset as they provide benefits that extend beyond one year. Therefore, option D is the best choice, as it correctly identifies current assets as those that are expected to be converted to cash in the near future.

Current Assets Are