What is a current asset quizlet?
A current asset is cash or other assets expected to be realized in cash or sold or consumed during the operating cycle or within the year, whichever is shorter.
What makes an asset current?
A current asset is an item on an entity’s balance sheet that is either cash, a cash equivalent, or which can be converted into cash within one year.
What is current asset answer?
A current asset is an asset that a company holds and can be easily sold or consumed and further lead to the conversion of liquid cash. For a company, a current asset is an important factor as it gives them a space to use the money on a day-to-day basis and clear the current business expenses.
Which asset is a current asset quizlet?
Terms in this set (8) A current asset is cash and any other company asset that will be turning to cash within one year from the date shown in the heading of the company’s balance sheet.
What makes an asset a current asset quizlet?
at What makes an asset a current asset? They are assets that are presumed to be converted to cash within one accounting period which could be a year.
What is not a current asset quizlet?
Current assets are economic resources that will be used up or converted into cash within the normal operating cycle of the business. Non-current Assets. Non-current assets are economic resources that will not be used up or converted into cash within the normal yearly operating cycle of the business.
How do you determine current assets?
Current Assets = Cash + Cash Equivalents + Inventory + Accounts Receivables + Marketable Securities + Prepaid Expenses + Other Liquid Assets
- Current ratio (Current Assets / Current Liabilities)
- Quick ratio = [(Current Assets – Inventory + Prepaid Expenses) / Current Liabilities]
Which of the following best describes current assets?
Current assets are those which are convertible into cash in short period of time i.e within a year. Accounts receivable reflects the amount to be received from the debtors for the sales made. Since, such amounts for sales made are receivable in the short period, accounts receivable are classified as current assets.
What are current assets Mcq?
Which of the following are examples of current assets?
Examples of current assets include:
- Cash and cash equivalents.
- Accounts receivable.
- Prepaid expenses.
- Inventory.
- Marketable securities.
What are examples of current assets?
What is not a current asset?
Non-current assets are assets whose benefits will be realized over more than one year and cannot easily be converted into cash. The assets are recorded on the balance sheet at acquisition cost, and they include property, plant and equipment, intellectual property, intangible assets, and other long-term assets.
What are the examples of current assets?
What are current assets examples?
What are current asset examples?
What is not a current asset Mcq?
Land is regarded as a fixed asset or non-current asset in accounting and not a current asset.
Which is not the current assets?
Current assets include items such as accounts receivable and inventory, while noncurrent assets are land and goodwill. Noncurrent liabilities are financial obligations that are not due within a year, such as long-term debt.
Which is not a current asset?
What are examples of current assets quizlet?
Current assets include: cash, marketable securities, receivables, inventory, and prepaid items. Include items such as notes receivable, government bonds, bonds and capital stock of corporations, and other securities.
What are the example of current?
Current is defined as the movement of water in a specific direction. An example of current is when a river moves towards a waterfall. (1) The flow of electrons through a circuit.