Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 7 - No. 5)
Which of the following best describes the term 'current assets'?
Assets that will be used in the business for more than one year.
Assets that are easily converted to cash within one year.
Assets that are held permanently in the business.
Assets that are depreciated over a long period.
Explanation
Current assets are assets that are expected to be converted to cash within one year or the operating cycle, whichever is longer.
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