Current Assets are those assets _____________.which can be converted into cash within 12 monthswhich can be converted into cash within a period normally not exceeding 12 monthswhich are held their conversion into cash within an operating cycle which norma (2024)

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Current Assets are those assets _____________.which can be converted into cash within 12 monthswhich can be converted into cash within a period normally not exceeding 12 monthswhich are held their conversion into cash within an operating cycle which norma? ›

Any asset which is expected to last or be in use for less than one year is considered as current assets. In other words current assets are those assets which are held by the business with the purpose of converting them into cash within a short period, i.e., one year. For e.g., Debtors, Bill receivables, Stock etc.

Current assets are cash or cash equivalents, inventory, marketable securities, or any other asset that can be converted to cash within one year. Current assets let businesses pay their short-term debts and liabilities and fund day-to-day operations.

Current assets are those assets which can be converted into cash or can be used to pay off liabilities within a time span of 12 months, i.e. one year. Some of the examples of current assets are cash, cash equivalents, inventories, debtors, bills receivables, etc.

A current asset, also known as a liquid asset, is any resource a company could use, turn into cash, or sell within a year. This includes cash in the bank, money that customers owe (accounts receivable), goods ready to be sold (inventory), and other investments that can be easily offloaded.

What is a current asset? Cash plus other assets that are expected to be sold or converted to cash during the current operating cycle. Includes: Demand deposit, cash equivalents, accounts receivable, inventory, pre-paids, and short-term investments.

Current Assets

A current asset on the balance sheet is an asset which can either be converted to cash or used to pay current liabilities within 12 months.

Current assets can be converted into cash in less than 12 months. These are also known as short-term assets. Non-current assets' value can't be realised until a period greater than 12 months. These are also known as long-term assets.

Current assets are any asset a company can convert to cash within a short time, usually one year. These assets are listed in the Current Assets account on a publicly traded company's balance sheet.

Current assets : Assets which can be converted into cash easily within a short time say one year are called as current assets. Eg. Debtors, Inventories, short term investments,bank and cash balances etc.

Liquidation sales and auction sales are two of the most commonly used ways to recover assets. A liquidation sale is a process of selling assets in an orderly manner over a period of time, with the goal of realizing higher values that are closer to fair market price.

How to find current assets? ›

Current Assets = Cash + Cash Equivalents + Inventory + Accounts Receivables + Marketable Securities + Prepaid Expenses + Other Liquid Assets.

What are some examples of current assets? Some examples of current assets include cash, cash equivalents, short-term investments, accounts receivable, inventory, supplies, and prepaid expenses.

Current assets are usually listed in the order of their liquidity and frequently consist of cash, temporary investments, accounts receivable, inventories and prepaid expenses.

Current assets (also called short-term assets) are assets a business uses, replaces and/or converts to cash within a normal operating cycle (typically less than 12 months). It distinguishes them from long-term assets, those a business uses for more than a year.

A current asset is a short-term liquid asset that can be used, converted to cash, or sold within one year of the business's operating cycle. Current assets are part of a company's working capital and are essential for day-to-day operations, typically contributing to the business's overall cash flow.

The correct answer is Liquid Assets. The assets which can be converted into cash within the short period of time is called as Liquid Assets. Examples of liquid assets may include cash, cash equivalents, money market accounts, marketable securities, short-term bonds, or accounts receivable.