Asked by ka ki cheng on Apr 28, 2024
Verified
Short-term assets are expected to be converted into cash within
A) a month.
B) a year.
C) four months.
D) six months.
Short-Term Assets
Assets expected to be converted into cash or used up within one year, such as inventory or accounts receivable.
Converted
This refers to changing something from one use, function, or purpose to another, such as converting raw materials into finished goods or converting an industrial building into a residential space.
- Grasp the importance of managing short-term assets and liabilities for operational liquidity.
Verified Answer
IH
ibrahim hossenApr 29, 2024
Final Answer :
B
Explanation :
Short-term assets, also known as current assets, are expected to be converted into cash within one year or within the normal operating cycle of the business, whichever is longer.
Learning Objectives
- Grasp the importance of managing short-term assets and liabilities for operational liquidity.
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