Current accounts receivables are receivables that are expected to be collected within
A) one year or the current financing cycle, whichever is longer.
B) one year or the current financing cycle, whichever is shorter.
C) one year or the current operating cycle, whichever is longer.
D) one year or the current operating cycle, whichever is shorter.

Question

Quizplus · Accepted Answer

Current accounts receivables are expected to be collected within one year or the current operating cycle, whichever is longer. This definition helps in classifying receivables based on the normal business cycle rather than a fixed period.

Current Accounts Receivables Are Receivables That Are Expected to Be