Asked by Estefani Zuniga Rodriguez on May 28, 2024
Verified
A current asset is:
A) An item currently owned by the firm.
B) An item that the firm expects to own within the next year.
C) An item currently owned by the firm that will convert to cash within the next 12 months.
D) The amount of cash on hand the firm currently shows on its statement of financial position.
E) The market value of all the items currently owned by the firm.
Current Asset
Assets that are expected to be converted into cash, sold, or consumed within one year or the normal operating cycle of the business, whichever is longer.
- Differentiate among various asset categories, focusing on intangible and current assets.
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
C
Explanation :
Current assets are items a company owns that are either cash or will be turned into cash within one fiscal year, aiding in the payment of short-term obligations.
Learning Objectives
- Differentiate among various asset categories, focusing on intangible and current assets.