PRC-1 · Chapter 1 · Question 77 of 100
Which of the following statements provides the most accurate definition of a 'Current Asset'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) An asset that is expected to be realized in cash, sold, or consumed within one year or the normal operating cycle.
Explanation
Current assets are those economic resources expected to provide short-term benefits, usually being realized, sold, or consumed within 12 months or a single normal operating cycle.
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