When calculating Return on Investment,current assets include:
A)Cash,Accounts Receivable,and Inventory
B)Cash,Accounts Receivable,and Equipment
C)Accounts Receivable,Equipment,and Real Estate
D)Equipment,Buildings,and Real Estate

Question

Quizplus · Accepted Answer

Current assets refer to those assets that can be easily converted into cash within a year or less. Cash, accounts receivable, and inventory are all examples of current assets, whereas equipment, buildings, and real estate are considered fixed assets. Therefore, the best choice is A, as it lists all current assets.

When Calculating Return on Investment,current Assets Include