Pastello, a bakery in New Jersey, needs to sell all the goods in its inventory before they perish. The bakery owners, Mark and Julia, plan to use the cash received from selling the goods to open a new outlet of Pastello in a different locality. In this scenario, the goods stored in Pastello's inventory represent its _____.
A) long-term liabilities
B) current liabilities
C) current assets
D) defensive assets

Question

Quizplus · Accepted Answer

The goods in Pastello's inventory are considered current assets because they are expected to be sold and converted into cash within a short period, typically within a year.

Pastello, a Bakery in New Jersey, Needs to Sell All