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which of the following statements best describes current assets? a. assets which are not expected to be converted into cash in the

Question

Which of the following statements best describes current assets? A. Assets which are not expected to be converted into cash in the short term B. Assets which are expected to be converted into cash in the short term C. Assets which are used to conduct the organisation's current business D. Assets which are currently located on the business premises

Answer

3.4 (237 Votes)
Verificación de expertos
Honor Elite · Tutor for 8 years

Answer

B

Explanation

## Step 1: Define current assets.Current assets are resources that a company expects to convert into cash or use up within one year from the end of the company's balance sheet reporting period.## Step 2: Analyze each option.### Option A: "Assets which are not expected to be converted into cash in the short term."This describes long-term assets, not current assets.### Option B: "Assets which are expected to be converted into cash in the short term."This accurately describes current assets.### Option C: "Assets which are used to conduct the organisation's current business."This is too broad and does not specifically define current assets.### Option D: "Assets which are currently located on the business premises."This is irrelevant to the definition of current assets.## Step 3: Select the best option.Based on the definition, the best description is provided by Option B.