Current assets are assets _______________ and fixed assets are assets __________
ID: 2737690 • Letter: C
Question
Current assets are assets _______________ and fixed assets are assets _______________ .
a.
converted to cash during the accounting year; converted to cash during the accounting year
b.
converted to cash during the accounting year; that have an expected life in excess of one year
c.
that have an expected life in excess of one year; converted to cash during the accounting year
d.
that have an expected life in excess of one year; that have an expected life in excess of one year
Current assets are assets _______________ and fixed assets are assets _______________ .
a.
converted to cash during the accounting year; converted to cash during the accounting year
b.
converted to cash during the accounting year; that have an expected life in excess of one year
c.
that have an expected life in excess of one year; converted to cash during the accounting year
d.
that have an expected life in excess of one year; that have an expected life in excess of one year
Explanation / Answer
Current assets are assets _______________ and fixed assets are assets _______________ .
The correct option is :
b. converted to cash during the accounting year; that have an expected life in excess of one year
Explanation:
Short-term assets or currebt assets, are assets that can be converted into cash within one fiscal year or one operating cycle. Current assets are used to facilitate day-to-day operational expenses and investments. Short-term assets can be readily converted into cash.
Some examples of current assets listed on the balance sheet are cash, accounts receivables, inventory, short-term investments and prepaid expenses.
Non-current or long-term assets is the other name for Fixed assets, are tangible assets that a company owns and uses in its production of goods and services. They must have a useful life greater than one fiscal year or one operating cycle.
Fixed assets generally include buildings, real estate, office equipment, manufacturing equipment and furniture.
Fixed assets are often listed on the balance sheet as "plant, property and equipment,"
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