Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 18 - No. 30)
Which of the following is a characteristic of a 'current asset'?
It is expected to be converted into cash within one year or the operating cycle, whichever is longer.
It represents an investment in a subsidiary company.
It has a useful life of more than one year.
It is a debt instrument issued by the company.
Explanation
Current assets are assets that are expected to be converted to cash or used up within one year or the operating cycle.
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