Current assets are those assets that can be converted into cash within:
A)One year and never longer.
B)One year or the operating cycle,whichever is longer.
C)One year or the operating cycle,whichever is shorter.
D)Management's discretion.

Question

Quizplus · Accepted Answer

Current assets are those assets that are expected to be converted into cash within one year or the operating cycle, whichever is longer. The operating cycle is the time it takes for a company to convert its inventory into cash. This definition ensures that a company is able to meet its short-term obligations with its current assets.

Current Assets Are Those Assets That Can Be Converted into Cash