An item that can be converted into cash or used up during the normal operating cycle is
A) a current asset.
B) Plant and Equipment.
C) a current liability.
D) a long-term liability.

Question

Quizplus · Accepted Answer

An item that can be converted into cash or used up during the normal operating cycle is considered a current asset, such as cash, accounts receivable, or inventory. Plant and Equipment are typically long-term assets that cannot easily be converted into cash. Current and long-term liabilities refer to debts owed by the company, not assets that can be converted into cash.

An Item That Can Be Converted into Cash or Used