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Question
Explain current assets with an example.
Answer in Brief
Solution
- Current assets are assets that are expected to be converted into cash or used up within one year or within the business's normal operating cycle, whichever is longer. They are essential for managing day-to-day operations and maintaining liquidity.
- Stock trade, debtors, bills receivable, bank balance are some examples of current assets.
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Classification of Assets and Liabilities
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