- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 19. Understanding Balance Sheets
- Subject 1. Components and Format of the Balance Sheet
CFA Practice Question
Current assets are cash and other assets expected to be converted into cash, sold, or consumed either in one year or in the operating cycle, ______
B. whichever the company wishes to.
C. One year is the maximum time period for current assets' expected life cycle.
A. whichever is longer.
B. whichever the company wishes to.
C. One year is the maximum time period for current assets' expected life cycle.
Correct Answer: A
Current assets are cash and other assets expected to be converted into cash, sold, or consumed either in one year or in the operating cycle, whichever is longer.
User Contributed Comments 2
| User | Comment |
|---|---|
| kalps | NB Current assets are sold, turned into cash or consumed in either one year or with the firms operating cycle, whichever is longer |
| F79KHAN | Agreed, Current assets are essentially the assets that are the most liquid among all asset class are either easily convertible to cash or expected to be sold/consumed within the year or operating cycle. |