It is possible for an asset to be a current asset even though the expected conversion of that asset into cash is to be longer than one year.

Question

Quizplus · Accepted Answer

The classification of an asset as current or non-current depends not only on the expected conversion of that asset into cash but also on the entity's operating cycle. If the expected conversion of an asset into cash is longer than one year but it is expected to be realized within the entity's operating cycle, then it can be classified as a current asset.

It Is Possible for an Asset to Be a Current