An asset is classified as current when:
A) it is expected to be realised or intended for sale or consumption in the entity's normal operating cycle.
B) the item is held form trading.
C) it is expected to be realised within twelve months after reporting date.
D) it is cash or cash equivalent.
E) All of the given answers.

Question

Quizplus · Accepted Answer

All of the given answers are correct criteria for classifying an asset as current. The asset must be expected to be realised or intended for sale or consumption in the entity's normal operating cycle, or expected to be realised within twelve months after the reporting date. Additionally, it may be held for trading or be cash or a cash equivalent.

An Asset Is Classified as Current When