Cash plus items that are readily convertible to cash, such as accounts receivable, marketable securities, and inventories are classified as ________ assets on a firm's balance sheet.
A) other
B) intermediate term
C) temporary
D) current
E) fixed

Question

Quizplus · Accepted Answer

Current assets include cash and assets that are expected to be converted to cash or used up within one year or the operating cycle, whichever is longer. This includes accounts receivable, marketable securities, and inventories, which are all assets that can be readily converted to cash within one year. Choice D, "current," best describes this category of assets.

Cash Plus Items That Are Readily Convertible to Cash, Such