Question

Assets that are expected to be converted to​ cash, sold, or used up during the next 12​ months, or within the​ business's normal operating cycle if the cycle is longer than a​ year, are called​ ________ assets.

Answer 1

Current Assets

Step-by-step explanation:

Current assets: It is that assets who are converted into cash within 12 months. Its life is of 12 months. The use of this asset is to check the liquidity of the business organization by applying various ratios like the current ratio, quick ratio, etc.

Example - Cash, inventory, accounts receivable, prepaid expenses, supplies etc