How are assets which are expected to be realized in cash, sold, or consumed within the normal operating cycle of a business or within one year (if the operating cycle is shorter than one year) reported on a classified balance sheet?
A) Property, plant, and equipment
B) Current assets
C) Intangible assets
D) Current liabilities

Question

Quizplus · Accepted Answer

Current assets include assets that are expected to be converted into cash or used up within one year or the operating cycle, whichever is shorter. This includes items such as cash, accounts receivable, inventory, and prepaid expenses.

How Are Assets Which Are Expected to Be Realized in Cash