Cash and other assets that will be converted into cash within one year or the normal operating cycle of the business,whichever is longer,are called
A) property.
B) plant.
C) equipment.
D) current assets.

Question

Quizplus · Accepted Answer

Current assets are those assets that can be easily converted into cash within one year or the normal operating cycle of the business, whichever is longer. This includes cash, accounts receivable, inventory, and prepaid expenses. Options A, B, and C refer to long-term assets such as property, plant, and equipment, which are not easily converted into cash in the short term.

Cash and Other Assets That Will Be Converted into Cash