A company's president identifies an opportunity to expand globally but will require cash flow on short notice.He requests a list of assets that can be converted into cash in less than one year.Which category provides this information?
A) current assets
B) fixed assets
C) short-term assets
D) other assets

Question

Quizplus · Accepted Answer

Current assets are assets that can be converted into cash within one year, such as cash, accounts receivable, and inventory. Fixed assets cannot be easily converted into cash and are used for long-term purposes. Short-term assets and other assets are not commonly used accounting terms. Therefore, the best choice to provide information on assets that can be converted into cash in less than one year is current assets.

A Company's President Identifies an Opportunity to Expand Globally but Will