Current assets of NorthPole.com at the end of each quarter were: 1st quarter $1.3 million, 2nd quarter $1.7 million, 3rd quarter $1.5 million and 4th quarter $2.2 million. The best estimate for North Pole's permanent current assets is
A) $2.2 million.
B) $1.675 million.
C) $1.3 million.
D) $0.9 million.

Question

Quizplus · Accepted Answer

Permanent current assets are the minimum level of current assets a company needs to continue its operations throughout the year. In this case, the lowest level of current assets reported by NorthPole.com was $1.3 million in the 1st quarter, making it the best estimate for the company's permanent current assets.

Current Assets of NorthPole