Current assets are those assets
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which can be converted into cash within 12 months
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which can be converted into cash within a period normally not exceeding 12 months
-
which can be converted into cash within an operating cycle which normally does not exceed 12 months
-
which are held for their conversion into cash within an operating cycle which normally does not exceed 12 months
Reveal answer
Fill a bubble to check yourself
D
Correct answer
Explanation
Current assets are defined not just by convertibility to cash but by the intent to convert them within the operating cycle. Option D is most precise because it captures both the purpose (held for conversion) and the timeframe (operating cycle normally not exceeding 12 months). Options A, B, and C focus only on the time aspect without the purpose element.