Q168
A current asset that is convertible to cash within 3 months can be referred to as
A.
Cash asset
B.
Operating asset
C.
Intangible assets
D.
Cash equivalent
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
A current asset that is convertible to cash within 3 months can be referred to as Cash equivalent. Cash and cash equivalents refer to the line item on the balance sheet that reports the value of a company's assets that are cash or can be converted into cash immediately.