An asset is considered to be a current asset if:

It has been bought recently and was bought new and not used

No worries! We‘ve got your back. Try BYJU‘S free classes today!

It can be realized in cash or sold or consumed in the business within one year

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

It is a piece of new machinery that is expected to last for at least ten years

No worries! We‘ve got your back. Try BYJU‘S free classes today!

All of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B
It can be realized in cash or sold or consumed in the business within one year

An asset is considered to be a current asset if It can be realized in cash or sold or consumed in the business within one year.

Suggest Corrections

Similar questions

Q. A current is either cash or an asset that can be sold and be converted into cash within a year and is often used to pay off current liabilities.

On January 1, 2011, an asset was acquired for Rs30,000. Its useful life was expected to be 10 years and the salvage value is expected to be Rs0. After four years of use, the company realized the asset would be useful for only three more years. (In other words, the total useful life of the asset will be seven years instead of the original 10 years.) The company uses the straight-line method of depreciation. The Depreciation Expense in each of the years 2015, 2016, and 2017 will be Rs___

___ assets are used up in the daily normal routine of the business which get converted into cash or cash equivalents within one year.

Q. Assets that a company expects to convert to cash to use within one year are called _________________.

Q. The number of years an asset is expected to be useful before it wears out is called its ___________.

Join BYJU'S Learning Program

An asset is considered to be a current asset if:

The correct option is B It can be realized in cash or sold or consumed in the business within one year An asset is considered to be a current asset if It can be realized in cash or sold or consumed in the business within one year.

The correct option is B
It can be realized in cash or sold or consumed in the business within one year

An asset is considered to be a current asset if It can be realized in cash or sold or consumed in the business within one year.