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What is a Current Asset?

4. What is a Current Asset?

1. An asset that is not physical in nature
2. Assets that have no tangible existence
3. Assets of a company that are expected to be sold or used
4. An asset that can easily be converted into cash

Answer: C) Assets of a company that are expected to be sold or used

Explanation:

Current assets address every one of the resources of an organization that are relied upon to be advantageously sold, consumed, utilized, or depleted through standard business tasks within one year. Current resources show up on an organization's accounting report, one of the expected budget summaries that should be finished every year. Current resources would incorporate money, cash reciprocals, debt claims, stock, attractive protections, prepaid liabilities, and other fluid resources. Current resources may likewise be called current records.