Final answer:
Settling current assets and liabilities in accordance with GAAP is an ongoing process typically performed at the end of each accounting period. It involves reconciling and adjusting current assets and reviewing and adjusting current liabilities, if necessary.
Step-by-step explanation:
Settling current assets and liabilities in accordance with GAAP (Generally Accepted Accounting Principles) does not involve a specific time frame. It is an ongoing process that is typically performed at the end of each accounting period, such as a month, quarter, or year.
During the closing process, current assets such as cash, accounts receivable, and inventory are reconciled and adjusted as necessary to reflect their true values. Current liabilities, on the other hand, are reviewed and adjusted, if needed, to ensure accuracy.
For example, if a company has outstanding invoices that have not been paid by the end of a reporting period, the accounts receivable balance may need to be adjusted to reflect the uncollectible portion.