Asked by Maria Mendez on May 09, 2024
Verified
An item that can be converted into cash or used up during the normal operating cycle is:
A) a current asset.
B) Revenue.
C) a current liability.
D) an expense.
Current Asset
An asset that is expected to be converted into cash or used up within one year or within the business's normal operating cycle.
Normal Operating Cycle
The average time period between when a company purchases raw materials for production and when it receives cash from selling the finished goods.
Current Liability
Current Liability is a company's financial obligation that is due to be paid within one year or within the normal operating cycle of the business.
- Ascertain the organization and representation of assets and liabilities within a classified balance sheet.
Verified Answer
HY
Humam YousefMay 11, 2024
Final Answer :
A
Explanation :
A current asset is an item that can be converted into cash or used up during the normal operating cycle of a business, typically within one year. This includes cash, inventory, and accounts receivable.
Learning Objectives
- Ascertain the organization and representation of assets and liabilities within a classified balance sheet.