BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Within 6 months
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Within one year
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Between 1 and 3 years
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Between 3 and 5 years
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Detailed explanation-1: -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-2: -What is a current asset? A current asset-sometimes called a liquid asset-is a short-term asset that a company expects to use up, convert into cash, or sell within one fiscal year or operating cycle. Non-current assets, on the other hand, are long-term assets that cannot be readily converted into cash within one year.
Detailed explanation-3: -What Are Current Assets? Current Assets are those business assets that will be converted into cash within one year, and assets that will be used up in the operation of a business within one year. That’s the quick definition, for those of you who want the basics.
Detailed explanation-4: -Current assets Current assets are short-term assets that can be used or converted into cash within one year. Current assets include cash and cash equivalents, accounts receivable, inventory, marketable securities, prepaid expenses, and office supplies.