The term "permanent current assets" implies:

Question

Quizplus · Accepted Answer

"Permanent current assets" typically refer to a baseline level of current assets, such as inventory or accounts receivable, that a company must maintain in order to operate its business. These assets are not self-liquidating, meaning they are not expected to be sold or converted into cash in the near term. They are also distinct from capital assets, which are typically longer-term assets such as property, plant, and equipment. Choice A is incorrect because capital assets are different from current assets. Choice B is incorrect because "nonmarketable assets" is not a commonly used term and does not accurately describe permanent current assets. Choice D is too specific and only refers to one type of current asset.

The Term "Permanent Current Assets" Implies