Current Assets are those assets _____________.

which can be converted into cash within 12 months

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which can be converted into cash within a period normally not exceeding 12 months

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which can be convened into cash within an operating cycle which normally does not exceed 12 months

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which are held for their conversion into cash within an operating cycle which normally does not exceed 12 months

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Solution

The correct option is C which are held for their conversion into cash within an operating cycle which normally does not exceed 12 months
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. are all current assets.

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Similar questions

Current assets are those assets which get converted into cash:

(a) Within six months

(b) Within one year

(d) Between three and five years

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.

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

___ refers to the investment in all the current assets such as cash, bills receivable, prepaid expenses, inventories, etc. These current assets get converted into cash within a year.

Current assets are those assets which get converted into cash

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