An item which may be converted to cash within one year or one operating cycle of the firm is classified as a
A) current liability.
B) long-term asset.
C) current asset.
D) long-term liability.

Question

Quizplus · Accepted Answer

A current asset is an item that can be converted to cash within one year or one operating cycle of the firm. Examples of current assets include cash, accounts receivable, and inventory. Long-term assets, long-term liabilities, and current liabilities do not meet this criteria.

An Item Which May Be Converted to Cash Within One