All current assets, by definition, will result in cash inflows within the next year or operating cycle whichever is longer.

Question

Quizplus · Accepted Answer

This statement is true. Current assets are those assets which are expected to be converted into cash within the next year or operating cycle, whichever is longer. Examples of current assets include cash, accounts receivable, inventory, and prepaid expenses. Since these assets are expected to generate cash inflows in the near future, they are classified as current assets.

All Current Assets, by Definition, Will Result in Cash Inflows