Which of the following is not a possible characteristic of current assets as defined by AASB 101?
A)a current asset is expected to be realised in, or is intended for sale or consumption in, the entity's normal operating cycle
B)a current asset is held primarily for the purpose of being traded
C)a current asset is expected to be realised within 12 months after the reporting date
D)a current asset is cash, excluding long term cash equivalents

Question

Quizplus · Accepted Answer

Current assets include cash and cash equivalents, where cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Therefore, excluding long-term cash equivalents does not align with the definition of current assets as they inherently include short-term cash equivalents.

Which of the Following Is Not a Possible Characteristic of Current