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what are the key characteristics of current assets? a. current assets are those resources that an...

what are the key characteristics of current assets?

a. current assets are those resources that an entity will use or turn into cash within the next 12 months

b. current assets are those resources that an entity will use or turn into cash within the next 3 months

c. current assets are those resources that an entity uses to operate its business regardless of their relationship to cash flows

d. current assets are those resources that are cash or cash equivalent investments. all other resources are long-term assets

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Answer #2

Current Assets comprises of two words, current and assets, current means circulating and asset means valuables. These are shown in the Assets side of the Balance Sheet which mainly comprise of:-

- Cash and Cash Equivalent

- Inventory

- Account Receivable

- Prepaid Expenses

Key Characteristics of Current Assets are as follows:-

- Short Lived existence

- Fast conversion into other assets

- Quick, Recurring decisions are taken thah lasts more.

- and are interlinked to each other.

Accordingly, the answer to above question is,

Current Assets are those resources that an entity will use or turn into cash within next 12 months.

answered by: anonymous
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