Current assets are those assets which get converted into cash ____________.

A

between one and three year

B

within a year

C

between three and five year

D

cannot be converted easily into cash

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And now we give you the correct answer:

Approved answer

Correct option is B)

Current asset is an asset, which can either be converted to cash or can be used to pay current liabilities within 12 months. It is the liquid form of assets and is a part of working capital of a firm.

Examples of current assets are cash, cash equivalents, short-term investments made by the company, accounts receivable, stock of inventory, prepaid liabilities etc.