Current assets are assets expected to
A)be converted to cash within twelve months.
B)be converted to cash within twelve months or one operating cycle if it is longer than twelve months.
C)remain on the books for at least twelve months.
D)remain on the books for at least twelve months or one operating cycle if longer than twelve months.

Question

Quizplus · Accepted Answer

Current assets are expected to be converted to cash within twelve months or one operating cycle if it is longer than twelve months. This includes assets such as inventory, accounts receivable, and prepaid expenses that are expected to be converted to cash within this timeframe. Therefore, choice B is the best option as it accurately reflects the definition of current assets.

Current Assets Are Assets Expected to