Question

The current assets of most companies are usually made up of?

1) assets that are currently used in the operations of the company
2) cash and assets expected to be converted to cash within a year
3) a very small proportion (less than 10)
4) cash, marketable securities, and accounts and notes receivable

Answer 1

2) cash and assets expected to be converted to cash within a year.

The current assets of most companies are usually made up of cash and assets expected to be converted to cash within a year, such as accounts receivable and marketable securities. These assets provide liquidity and can be used to meet short-term financial obligations.

Step-by-step explanation:

The current assets of most companies usually consist of cash and assets expected to be converted to cash within a year, such as accounts receivable and marketable securities. The current assets of most companies are usually made up of cash and assets expected to be converted to cash within a year, such as accounts receivable and marketable securities. These assets provide liquidity and can be used to meet short-term financial obligations.

These assets are important because they provide liquidity to the company and can be used to meet short-term financial obligations.

For example, if a company needs to pay its suppliers or employees, it can use its current assets like cash or accounts receivable to fulfill those obligations.