Current assets as reported on the balance sheet do NOT include:
A)cash equivalents.
B)inventory.
C)prepaid insurance.
D)long-term investments.

Question

Quizplus · Accepted Answer

Current assets include assets that are expected to be converted into cash within one year or one operating cycle, whichever is longer. Long-term investments are not expected to be converted into cash within one year or the operating cycle, and therefore are not considered current assets.

Current Assets as Reported on the Balance Sheet Do NOT