Current assets are assets expected to be converted to cash,sold,or consumed during the next:
A)12 months or within the business's operating cycle if longer than a year.
B)12 months or within the business's operating cycle if less than a year.
C)6 months.
D)24 months.

Question

Quizplus · Accepted Answer

According to generally accepted accounting principles (GAAP), current assets are defined as assets that are expected to be converted to cash, sold, or consumed within the next 12 months or within the business's operating cycle if the cycle is longer than a year. This definition includes assets such as cash, accounts receivable, inventory, and prepaid expenses. Therefore, option A is the correct answer.

Current Assets Are Assets Expected to Be Converted to Cash,sold,or