Cash itself or items that could be quickly turned into cash or will be used within 1 year are called ________.

Question

BlackTom AI · Accepted Answer

We start by identifying what the question is asking: terms used for assets that are cash or can be turned into cash quickly, typically within one year.
Option 1: current assets. This is the standard accounting term for assets expected to be converted into cash or used up within one year or one operating cycle, such as cash, accounts receivable, and inventory. This aligns exactly with the definition in the prompt.
Option 2: liquid cash. While cash itself is liquid, the phrase 'liquid cash' is not a formal accounting category and is not used to classify a broad group of assets; it redundantly emphasizes cash rather than the broader current asset category.
Option 3: long-term assets. These are assets expected to provide benefits beyond one year, such as property, plant, and equipment, and investments intended to be held long term. This contradicts the 'within 1 year' criterion in the question.
Option 4: liquid assets. Although 'liquid assets' refers to assets that can be quickly converted to cash, in accounting practice it is not the term used for the category defined by a one-year horizon; the term used is 'current assets' for those short-term items, while 'liquidity' describes how easily assets can be converted, not the time frame categorization.
Overall, among the options, the one that uniquely matches the provided definition as a formal accounting category is 'current assets'.

GBUS4330W01 25 Fall GBUS 4330 Quiz 2 - Requires Respondus LockDown Browser

Cash itself or items that could be quickly turned into cash or will be used within 1 year are called ________.

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类似问题

Referring to the Balance Sheet printed in Step 22 of the Practical Exam, what is the amount shown for Total current assets?

Calculate the current assets. Cash 789 Property, plant & equipment 128,859 Bank loan, 5 years 13,482 Inventory 440 Notes payable, 10 years 10,052 Accounts receivable 1,143 Accounts payable 5,766 Unearned revenue 1,929 Prepaid insurance 8,197 Salary payable 1,110 Patents 141,164

Calculate current assets. Cash 932 Property, plant & equipment 133,221 Bank loan, 5 years 16,821 Inventory 635 Notes payable, 10 years 11,405 Accounts receivable 1,767 Accounts payable 5,016 Unearned revenue 1,548 Prepaid insurance 6,341 Salary payable 1,618 Patents 188,385

Which of the following are current assets? (Check all that apply.)

Accounts Receivable is classified on the Blank ______.

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

What are current assets? BlackTom题目解析

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GBUS*4330*W01 25 Fall GBUS 4330 Quiz 2 - Requires Respondus LockDown Browser

Cash itself or items that could be quickly turned into cash or will be used within 1 year are called ________.

查看解析

登录即可查看完整答案

类似问题

Referring to the Balance Sheet printed in Step 22 of the Practical Exam, what is the amount shown for Total current assets?

Calculate the current assets. Cash 789 Property, plant & equipment 128,859 Bank loan, 5 years 13,482 Inventory 440 Notes payable, 10 years 10,052 Accounts receivable 1,143 Accounts payable 5,766 Unearned revenue 1,929 Prepaid insurance 8,197 Salary payable 1,110 Patents 141,164

Calculate current assets. Cash 932 Property, plant & equipment 133,221 Bank loan, 5 years 16,821 Inventory 635 Notes payable, 10 years 11,405 Accounts receivable 1,767 Accounts payable 5,016 Unearned revenue 1,548 Prepaid insurance 6,341 Salary payable 1,618 Patents 188,385

Which of the following are current assets? (Check all that apply.)

Accounts Receivable is classified on the Blank ______.

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

What are current assets? BlackTom题目解析

更多留学生实用工具

希望你的学习变得更简单

GBUS4330W01 25 Fall GBUS 4330 Quiz 2 - Requires Respondus LockDown Browser