The term "permanent current assets" implies
A) the same thing as fixed assets.
B) nonmarketable assets.
C) some minimum level of current assets that are not self-liquidating.
D) inventory.

Question

Quizplus · Accepted Answer

Permanent current assets are a minimum level of current assets that are not expected to be sold or converted into cash within the operating cycle of a company, making them non-self-liquidating. This includes items like cash, accounts receivable, and inventory. Thus, choice C is the correct answer. Choice A is incorrect because fixed assets are long-term assets, while permanent current assets are short-term assets. Choice B is incorrect because permanent current assets can be marketable or nonmarketable. Choice D is incorrect because inventory is just one component of permanent current assets.

The Term "Permanent Current Assets" Implies