A Current Asset Is One That

question 52

Multiple Choice

A current asset is one that:

• A)the company has owned for over one year.
• B)the company will use up or convert into cash in five years or more.
• C)the company will use up or convert into cash in one year or less.
• D)the company will use up or convert into cash in more than one year.

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Definitions:

Loan

An amount of money that is lent to someone, which is expected to be paid back with interest.

Interest

The cost of borrowing money, typically expressed as an annual percentage of the principal amount.

Months

Units of time into which a year is divided, normally consisting of 28 to 31 days.

Deposit

A sum of money placed or kept in a bank account, usually to gain interest.