WAEC - Accounts Principles Of Accounts (2024 - No. 20)

An item is classified as a current asset if it is 
 purchased for long-term use. 
expected to be realized within the balance sheet date. 
fictitious in nature. 
neither cash nor cash equivalent.

Explanation

A current asset is an asset whose life span does not last longer than a year. Its value is expected to be realized within a year, in contrast to non-current asset whose value spans for more than a year.

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