The basis for classifying assets as current or noncurrent is conversion to cash within
A) the accounting cycle or one year, whichever is shorter.
B) the operating cycle or one year, whichever is longer.
C) the accounting cycle or one year, whichever is longer.
D) the operating cycle or one year, whichever is shorter.

Question

Quizplus · Accepted Answer

The basis for classifying assets as current or noncurrent is their conversion to cash within the operating cycle or one year, whichever is longer. This classification helps in understanding the liquidity and financial health of a company.

The Basis for Classifying Assets as Current or Noncurrent Is