Question:
Define current assets and list the typical asset categories included in this classification.
Answer:
Current assets include cash and other assets that are reasonably expected to be converted to cash or
consumed during one year, or within the normal operating cycle of the business if the operating cycle is
longer than one year. The typical asset categories classified as current assets include:
— Cash and cash equivalents
— Short-term investments
— Accounts receivable
— Inventories
— Prepaid expenses
Define current assets and list the typical asset categories included in this classification.
Answer:
Current assets include cash and other assets that are reasonably expected to be converted to cash or
consumed during one year, or within the normal operating cycle of the business if the operating cycle is
longer than one year. The typical asset categories classified as current assets include:
— Cash and cash equivalents
— Short-term investments
— Accounts receivable
— Inventories
— Prepaid expenses
