Current assets of SantasElves.com at the end of each quarter were: first quarter $1.3 million, second quarter $1.7 million, third quarter $1.5 million and fourth quarter $2.2 million.The best estimate for Santa's Elves permanent current assets is [blank].
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 is $1.3 million in the first quarter, making it the best estimate for Santa's Elves' permanent current assets.

Current Assets of SantasElves