A current asset is
A) an expense incurred in the business.
B) an asset which is currently being used to produce a product or service.
C) usually found as a separate classification in the income statement.
D) expected to be realized in cash, sold or consumed within one year of the balance sheet.

Question

Quizplus · Accepted Answer

Current assets are assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business, whichever is longer. This includes items like cash, accounts receivable, and inventory. Options A, B, and C do not accurately define current assets.

A Current Asset Is