Current assets are assets expected to be converted to cash,sold,or consumed within the next:
A)12 months or within the business's normal operating cycle if longer than a year.
B)12 months or within the business's normal operating cycle if less than a year.
C)6 months.
D)24 months.

Question

Quizplus · Accepted Answer

Current assets are expected to be converted to cash, sold, or consumed within either 12 months or within the business's normal operating cycle, whichever is longer. This is in accordance with generally accepted accounting principles (GAAP). Therefore, option A is the correct choice.

Current Assets Are Assets Expected to Be Converted to Cash,sold,or