Current assets are cash and other assets that will be converted into cash or used up within
A) One year
B) The normal operating cycle of the business or one year, whichever is longer
C) The normal operating cycle of the business
D) The normal operating cycle of the business or one year, whichever is shorter
E) None of the above

Question

Quizplus · Accepted Answer

Current assets are defined as cash and other assets that are expected to be converted into cash, sold, or consumed either within one year or within the normal operating cycle of the business, whichever is longer. This definition allows for the inclusion of assets that may take longer than a year to convert into cash if the business's operating cycle is longer than a year.

Current Assets Are Cash and Other Assets That Will Be