Final answer:
False. All claims held against customers and others for money, goods, or services are reported as accounts receivable which is a current asset. Current assets are assets that are expected to be converted into cash or consumed within one year or within the normal operating cycle of a business, whichever is longer.
Step-by-step explanation:
False. All claims held against customers and others for money, goods, or services are reported as accounts receivable which is a current asset. Current assets are assets that are expected to be converted into cash or consumed within one year or within the normal operating cycle of a business, whichever is longer.
Examples of current assets include cash, short-term investments, accounts receivable, inventory, and prepaid expenses. These assets are reported on a company's balance sheet and provide a snapshot of the company's liquidity and ability to meet short-term obligations.
Liabilities, on the other hand, represent the company's obligations and are classified as current liabilities if they are expected to be settled within one year or within the normal operating cycle of a business. Some examples of current liabilities include accounts payable, accrued expenses, and short-term debt.