At the time the Bieg Plumbing Suppliers prepared its financial statements, it had several customers who bought goods over the past three months on its "90 days same as cash" credit plan. These customers had not yet paid their bills, but they have good credit ratings and Bieg is confident that they will make their payments on time. The amount these credit customers owe would show up as part of the
A) current assets listed on Bieg's balance sheet.
B) current liabilities listed on Bieg's balance sheet.
C) a deferred cash flow on Bieg's statement of cash flows.
D) unrealized revenue reported on Bieg's income statement.

Question

Quizplus · Accepted Answer

A current asset is an asset that can or will be converted into cash in less than a year. Current assets include cash, accounts receivable, and inventory. Because Bieg expects payments on these accounts receivable within 90 days, they are considered a current asset.

At the Time the Bieg Plumbing Suppliers Prepared Its Financial