A current asset is one that:
A)the company has owned for over one year.
B)the company has owned for over five years.
C)the company will use up or convert into cash in less than one year.
D)the company has updated to reflect its current value.

Question

Quizplus · Accepted Answer

A current asset is an asset that can be converted to cash within one year or less, or is expected to be used up within one year. Choices A, B, and D are incorrect as they refer to the length of time the company has owned the asset or its updated value, which are not relevant in determining if the asset is current.

A Current Asset Is One That