Which of the following is included within current assets on a balance sheet?

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BlackTom AI · Accepted Answer

To answer this question, we first recall what counts as a current asset on a balance sheet. 
Option 1: Inventory. Inventory is typically sold within a short period and is considered a current asset because it is expected to be converted into cash within one operating cycle or within a year. 
Option 2: Long-term investments. These are assets not expected to be converted into cash within one year and thus are classified as non-current or long-term investments. 
Option 3: Intangible assets. Examples include patents, copyrights, and goodwill; these are also non-current assets because they provide value over a longer horizon and are not expected to be converted to cash within a year. 
Option 4: Land. Land is a fixed asset and part of non-current assets since it is not readily convertible to cash and is held for long-term use or investment. 
In summary, current assets are assets likely to be converted into cash within one year, and among the choices, only Inventory fits that criterion.

ACCT 2051 (070) Midterm Exam #1

Which of the following is included within current assets on a balance sheet?

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What are current assets? BlackTom题目解析

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