Assets that can be converted into cash within the following year are referred to as ________.
A) liquid assets
B) long-term assets
C) quick assets
D) current assets

Question

Quizplus · Accepted Answer

Current assets are assets that can be converted into cash within the next year. This includes items such as cash and cash equivalents, accounts receivable, and inventory. Options A and C are incorrect because they are not commonly used accounting terms. Option B refers to assets that will not be converted into cash within the next year.

Assets That Can Be Converted into Cash Within the Following