Current assets include [blank].
A)all assets that have not been fully depreciated
B)accounts payable, accounts receivable and short-term notes
C)cash, accounts receivable and leased equipment
D)cash, accounts receivable and inventory

Question

Quizplus · Accepted Answer

Current assets are those which can be easily converted into cash within a year or less. Cash, accounts receivable, and inventory are examples of current assets as they can be converted into cash quickly. Accounts payable and short-term notes payable are liabilities, while leased equipment is a long-term fixed asset. Therefore, the best choice is D - cash, accounts receivable, and inventory.

Current Assets Include [Blank]