Cash and other assets that may reasonably be expected to be realized in cash, sold, or consumed through the normal operations of a business, usually longer than one year, are called current assets.

Question

Quizplus · Accepted Answer

Current assets are typically assets that can be converted into cash within one year or less, not longer than one year as stated in the statement. Examples of current assets include cash, accounts receivable, inventory, and prepaid expenses.

Cash and Other Assets That May Reasonably Be Expected to Be