Asked by Praneeth Ganedi on Jul 13, 2024
Verified
Cash and other assets that may reasonably be expected to be realized in cash, sold, or consumed through the normal operations of a business, usually longer than one year, are called current assets.
Current Assets
Assets that a company expects to convert into cash or use up within one year or the operating cycle, whichever is longer.
- Define current assets and their characteristics.
Verified Answer
KM
Keirstyn MondileJul 15, 2024
Final Answer :
False
Explanation :
Current assets are typically assets that can be converted into cash within one year or less, not longer than one year as stated in the statement. Examples of current assets include cash, accounts receivable, inventory, and prepaid expenses.
Learning Objectives
- Define current assets and their characteristics.
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