Current assets are
A) cash and other assets that will not be used during the year.
B) cash and other assets that will be used during the year.
C) cash and other assets that will be converted or consumed during the normal operating cycle of the company or one year, whichever is longer.
D) cash and assets that will be converted or consumed during the normal operating cycle or one year, whichever is shorter.

Question

Quizplus · Accepted Answer

Current assets are cash and other assets that will be converted or consumed during the normal operating cycle of the company or one year, whichever is longer. This definition emphasizes that current assets will be used up or converted into cash within a year or the normal operating cycle, which usually covers a period longer than one year. Therefore, option C is the best choice.

Current Assets Are