What characteristic must an asset have in order to count as a current
QUESTION
What characteristic must an asset have in order to count as a current asset?
A) tangibility
B) liability
C) goodwill
D) permanence
E) liquidity
ANSWER
Answer: E
Explanation: E) The essential characteristic of current assets is their liquidity; they are easily converted into cash, whereas assets such as land and buildings are not.
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