An example of a current asset is:
A) Inventory
B) Equipment
C) Retained earnings
D) Owner's equity

Question

Quizplus · Accepted Answer

A current asset is an asset that is expected to be converted into cash within one year. Inventory is a current asset because it is expected to be sold within one year, and the cash from the sales will become available for use. Equipment (choice B), retained earnings (choice C), and owner's equity (choice D) are not current assets.

An Example of a Current Asset Is