Assets That Will Be Converted into Cash Within One Year

question 4

Multiple Choice

Assets that will be converted into cash within one year are called

• A) Short-term assets
• B) Long-term assets
• C) Capital assets
• D) Financial assets

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Definitions:

Closing Rate

The exchange rate of one currency to another at the end of a trading session in the foreign exchange market.

Spot Exchange Rate

The current market price at which one currency can be exchanged for another currency.

Spot Exchange Rate

The spot exchange rate is the current exchange rate at which a currency can be bought or sold for immediate delivery.

Initial Recognition

The process of recording an asset or liability for the first time in the financial statements, according to its fair value.