Which of the following best describes the term "current assets"?
A)The amount of total profits earned by a business since it began operations plus all other resources.
B)The amount of claim that the owners have in the business in the current year.
C)Assets expected to be converted into cash within one year or one operating cycle, whichever is longer.
D)The cumulative profits earned by a business less any dividends distributed in the current period.

Question

Quizplus · Accepted Answer

Current assets are assets that are expected to be converted into cash within one year or one operating cycle, whichever is longer. Examples of current assets include cash, accounts receivable, inventory, and prepaid expenses.

Which of the Following Best Describes the Term "Current Assets