Total assets less net fixed assets equals ________.
A) gross assets
B) current assets
C) depreciation
D) liabilities and equity

Question

Quizplus · Accepted Answer

Total assets less net fixed assets equals current assets. This is because current assets are those that can be easily converted to cash within a year, while net fixed assets are assets that are not intended for sale and have a useful life of more than a year. Therefore, subtracting net fixed assets from total assets leaves only the assets that can be quickly converted to cash, which are the current assets.

Total Assets Less Net Fixed Assets Equals ________