Which of the following is considered a current asset?

₹0.0

Question: Which of the following is considered a current asset?

Options:

Correct Answer: Accounts Receivable

Solution:

Accounts Receivable is considered a current asset as it is expected to be converted into cash within one year.

Which of the following is considered a current asset?

Which of the following is considered a current asset?

Step 1: Understand what a current asset is. A current asset is something a company owns that can be turned into cash within one year.
Step 2: Look at the options given. Identify which option can be converted into cash quickly.
Step 3: Recognize that Accounts Receivable means money that customers owe to the company for goods or services already provided.
Step 4: Confirm that since Accounts Receivable is expected to be paid within a year, it qualifies as a current asset.

No concepts available.