Current assets include the cash a firm already has on hand and in the bank plus any assets that can be converted into cash within a "normal" operating period of ____ month(s).
A) 1
B) 6
C) 12
D) 18

Question

Quizplus · Accepted Answer

Current assets are defined as assets that are expected to be converted into cash within one year or within the operating cycle of the business, whichever is longer. The "normal" operating period typically refers to one year (12 months).

Current Assets Include the Cash a Firm Already Has on Hand