Current Assets Are Cash or Other Assets That Are Reasonably

question 95

Multiple Choice

Current assets are cash or other assets that are reasonably expected to be converted into cash, sold, or consumed within one year or a normal operating cycle. An operating cycle is defined as the company's ability to spend cash

• A) to pay off the company's liabilities
• B) to acquire inventory, which is sold and returned to cash
• C) to acquire inventory, which is sold to customers in the normal course of business
• D) in the generation of services, which can result in an increase in revenue and net income from operations

---

Definitions:

Biological Dependence

A state in which an organism requires a substance to function normally, with cessation causing physical symptoms of withdrawal.

Psychological Dependence

A form of dependence characterized by a perceived need to use a substance for its mental effects, often leading to cravings and misuse.

Middle Adulthood

A stage of life typically characterized as occuring between the ages of 40 and 65, marked by personal, professional, and familial achievements and challenges.

Chronic Illnesses

Long-term health conditions that are persistent or otherwise have lasting effects on an individual's well-being, such as diabetes or heart disease.