Assets are expected to be realized in cash,sold,or consumed within the normal operating cycle of a business or within one year (if the operating cycle is shorter than one year).How are they reported on a classified balance sheet?

Question

Quizplus · Accepted Answer

Assets expected to be realized in cash, sold, or consumed within the normal operating cycle of a business or within one year are classified as current assets on the balance sheet. Property, plant, and equipment are long-term assets, and intangible assets may include both current and long-term assets depending upon their expected useful life. Current liabilities, on the other hand, represent the debts or obligations that the company is expected to pay within one year or the normal operating cycle, whichever is longer.

Assets Are Expected to Be Realized in Cash,sold,or Consumed Within