Which of the following items is NOT normally considered a current asset?
A) Accounts receivable.
B) Inventory.
C) Bonds.
D) Cash.
E) Short-term,highly-liquid,marketable securities.

Question

Quizplus · Accepted Answer

Bonds are not considered a current asset because they represent a long-term investment rather than a readily available source of cash to cover current expenses or obligations. Current assets are defined as assets that are expected to be converted into cash within a year or the operating cycle of the business, whichever is longer. Examples of current assets include accounts receivable, inventory, cash, and short-term, highly-liquid, marketable securities.

Which of the Following Items Is NOT Normally Considered a Current