Cash and all other assets that may be reasonably expected to be converted to cash or consumed within one year or the normal operating cycle of the business are classified as

Question

Quizplus · Accepted Answer

Cash and all other assets that may be reasonably expected to be converted to cash or consumed within one year or the normal operating cycle of the business are classified as current assets. Temporary investments and marketable securities could be classified as current assets, but not necessarily, as they may have a longer maturity date. Investments, on the other hand, includes long-term assets such as stocks or real estate.

Cash and All Other Assets That May Be Reasonably Expected