BUISENESS MANAGEMENT
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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There is no difference
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Current assets are the same as current liabilities and non current are not
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Current assets tend to be easily converted to cash whereas non current are not
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A company will gain more profit if they use non current only
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Detailed explanation-1: -Current assets are a company’s short-term assets; those that can be liquidated quickly and used for a company’s immediate needs. Noncurrent assets are long-term and have a useful life of more than a year. Examples of current assets include cash, marketable securities, inventory, and accounts receivable.
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: -The main distinction between tangible and intangible assets is that one can be touched while the other exists only on record and balance sheet. Fixed and Current assets are two types of this asset. Current assets are items such as inventory, cash, liquid financial instrument, or securities.
Detailed explanation-4: -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-5: -Examples of current assets include cash, cash equivalents and accounts receivable, and examples of non-current assets include long-term investments, intangible assets and fixed assets.