BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -No, current assets are not the same as fixed assets. Current assets definition shows that these assets are liquid and can be easily converted to cash within a year or a company’s operating cycle. As the fixed assets are long-term in nature, their use-value is over one year of a company’s operating cycle.

Detailed explanation-2: -Current assets are those that can be quickly converted into cash. This includes cash itself, as well as investments, accounts receivable, and inventory. Current assets are important components of your balance sheet and financial statements. Current assets are items that you expect to convert to cash within one year.

Detailed explanation-3: -A liquid asset is an asset that can easily be converted into cash in a short amount of time. Liquid assets include things like cash, money market instruments, and marketable securities.

Detailed explanation-4: -Current assets are those assets which can be converted into cash or can be used to pay off liabilities within a time span of 12 months, i.e. one year. Some of the examples of current assets are cash, cash equivalents, inventories, debtors, bills receivables, etc.

Detailed explanation-5: -Explanation: Current assets refer to those assets which can be easily converted into cash within a year or 1 month or an accounting cycle. Simply, assets that are converted to cash or consumed within a year are known as current assets and reported on the classified balance sheet of a firm under the assets side.