Current assets and current liabilities are expected to be used up or come due within one year or the company's operating cycle whichever is longer.

Question

Quizplus · Accepted Answer

This statement is true. Current assets and current liabilities are those that are expected to be used up or come due within one year or the company's operating cycle, whichever is longer. The operating cycle is the time it takes for a company to acquire inventory, sell it, and collect cash from customers.

Current Assets and Current Liabilities Are Expected to Be Used