An item which may be converted to cash within one year or one operating cycle of the firm is classidied as a....

A. current liability
B. long-term asset
C. current asset
D. long-term liability

I like C current asset-the quest is the definition of a current asset

Is this correct?

Yes, correct, but I am going to leave the rest to business experts instead of to a physicist.

Yes, you are correct. An item that can be converted to cash within one year or one operating cycle of the firm is classified as a current asset. Current assets are assets that are expected to be converted to cash, sold, or consumed within a year or one operating cycle, whichever is longer. They represent the short-term resources of a company that can be easily converted into cash to meet its current obligations and fund day-to-day operations. Examples of current assets include cash, accounts receivable, inventory, and prepaid expenses.

Yes, you are correct. An item that may be converted to cash within one year or one operating cycle of the firm is classified as a current asset. Examples of current assets include cash, accounts receivable, inventory, and prepaid expenses.