The current assets of most companies are usually made up of: assets that are cur

Question

The current assets of most companies are usually made up of:

assets that are currently used in the operations of the company.

cash and assets expected to be converted to cash within a year.

a very small proportion (less than 10%) of the total assets of the entity

cash, marketable securities, and accounts and notes receivable.

assets that are currently used in the operations of the company.

cash and assets expected to be converted to cash within a year.

a very small proportion (less than 10%) of the total assets of the entity

cash, marketable securities, and accounts and notes receivable.

Explanation / Answer

Answer B. Cash and assets expected to converted to cash within a year

A current asset is cash and any other company asset that will be turning to cash within one year from the date of the company's balance sheet. (If a company has an operating cycle that is longer than one year, an asset that will turn to cash within the length of its operating cycle is considered to be a current asset

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