Cash itself or items that could be quickly turned into cash or will be used within 1 year are called ________.
A) liquid assets
B) long-term assets
C) current assets
D) liquid cash

Question

Quizplus · Accepted Answer

Current assets refer to cash or items that can be quickly converted into cash or will be used up within 1 year. This includes items such as inventory, accounts receivable, and prepaid expenses. Liquid assets (A) are a type of current asset that refers specifically to cash, cash equivalents, and other short-term investments that can be easily converted into cash without a significant loss in value. Long-term assets (B) are assets that will not be used or converted into cash within the next year. Liquid cash (D) is not a commonly used term in accounting or finance.

Cash Itself or Items That Could Be Quickly Turned into Cash