To be classified as a current asset,an investment must meet which of the following criteria:
A)the investment must be liquid.
B)the investor must intend to either convert the investment to cash within one year or current operating cycle,whichever is longer,or use it to pay a current liability.
C)the investment must be easily convertible to cash.
D)all of the above.

Question

Quizplus · Accepted Answer

All of the criteria listed are necessary for an investment to be classified as a current asset. The investment must be expected to be converted to cash or used to pay a current liability within one year or the operating cycle, whichever is longer. Additionally, it must be liquid and easily convertible to cash.

To Be Classified as a Current Asset,an Investment Must Meet