Q3
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A.
Current assets
AnswerB.
Fixed assets
C.
Intangible assets
D.
Investments
Answer: Option A
Solution
Answer: Option A
Solution:
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as Current assets. Current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets.