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A current asset may be cash or must be capable of being converted into cash with a relatively short period of time usually less than five years?
Wiki User
∙ 13y ago
You have the first part right, current assets is cash or anything that can be converted to cash in a short period of time, however, that is "not" five years, a current asset must have the ability to convert into cash within ONE YEAR or LESS. Anything above one year is a fixed or long-term asset, not a current asset.
Wiki User
∙ 13y ago
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