A current asset:

Question

A current asset:

Quizplus · Accepted Answer

Current assets are assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business, whichever is longer. Accounts payable is a liability, not an asset. Illiquid assets are not easily converted into cash and thus not considered current assets. Current assets are reported on the balance sheet, not in the statement of comprehensive income. Shareholders' equity represents the owners' claims on the business after liabilities have been subtracted from assets, and does not include current assets directly.

A Current Asset