Accounting for IGCSE & O level - Final Statements (Section 5 - No. 26)
Which of the following is a characteristic of current assets?
They are used for more than one accounting period.
They are expected to be converted to cash within one year or the operating cycle, whichever is longer.
They are primarily used for generating revenue.
They are not subject to depreciation.
Explication
This is a defining characteristic of current assets.