Which one of these is a correct definition?
A)Net working capital equals current assets plus current liabilities.
B)Current liabilities are debts that must be repaid in 18 months or less.
C)Current assets are assets with short lives,such as accounts receivable.
D)Long-term debt is defined as a residual claim on a firm's assets.
E)Tangible assets are fixed assets such as patents.

Question

Quizplus · Accepted Answer

Current assets indeed include assets with short lives, such as accounts receivable, inventory, and cash, which are expected to be converted into cash within a year.

Which One of These Is a Correct Definition