Current Assets consist of all of the following EXCEPT
A) Cash
B) Any asset sold or consumed in more than a year
C) Accounts Receivable
D) Merchandise Inventory

Question

Quizplus · Accepted Answer

Current assets are assets that are expected to be converted into cash or used up within one year or an operating cycle (whichever is longer). Option B states that any asset sold or consumed in more than a year is not a current asset, which is correct. Cash, accounts receivable, and merchandise inventory are all examples of current assets.

Current Assets Consist of All of the Following EXCEPT