Current assets are assets that provide a benefit to a company over more than one year.Current assets provide a benefit to a company over the next year only.

Question

Quizplus · Accepted Answer

Current assets are assets that are expected to either be consumed or converted into cash within one year or one operating cycle of the business. They include cash, accounts receivable, inventory, and prepaid expenses. Therefore, they provide a benefit to the company over the next year only, not more than one year.

Current Assets Are Assets That Provide a Benefit to a Company