Which of the following is a current asset?

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Multiple Choice

Which of the following is a current asset?

Explanation:
Current assets are resources the company expects to convert to cash or use up within one year or the operating cycle. Accounts receivable fits this because it represents amounts customers owe that are typically collected in the short term, making it a classic current asset. Land is a long-term asset, kept for use over many years. Patents and copyrights are intangible assets with multi-year value and are generally not expected to be converted to cash within a year, so they’re considered noncurrent.

Current assets are resources the company expects to convert to cash or use up within one year or the operating cycle. Accounts receivable fits this because it represents amounts customers owe that are typically collected in the short term, making it a classic current asset. Land is a long-term asset, kept for use over many years. Patents and copyrights are intangible assets with multi-year value and are generally not expected to be converted to cash within a year, so they’re considered noncurrent.

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