Current assets include cash and all other assets expected to become cash or be consumed:
A) Within one year.
B) Within one operating cycle.
C) Within one year or one operating cycle, whichever is shorter.
D) Within one year or one operating cycle, whichever is longer.

Question

Quizplus · Accepted Answer

Current assets are expected to be converted into cash, sold, or consumed either within one year or within the operating cycle of the business, whichever is longer. This allows for the inclusion of assets that may take longer than a year to liquidate in businesses with longer operating cycles.

Current Assets Include Cash and All Other Assets Expected to Become