Q.Current assets is -
A) Furniture
B) Machine
C) Debtor
D) Building

Goodwill is an intangible fixed asset, not a current asset, so the answer is C) Goodwill.

Current assets are assets that are expected to be converted into cash or cash equivalents within a short period, usually one year. Checking each option:

• Stock (A) — inventory held for sale, convertible to cash within a year: current asset.
• Debtor (B) — amount receivable from customers shortly: current asset.
• Bills receivable (D) — a short-term instrument due within a year: current asset. …

Assets convertible into cash within one year are Current assets, so that fills the blank.

In financial management, current assets are short-term assets expected to be converted into cash or cash equivalents within a period of one year or one operating cycle. Examples include inventory (stock), debtors, bills receivable, and cash itself. They are distinguished from fixed assets, which are held for long-term us …

Assets expected to be converted into cash within one year are (b) Current assets.

In Kerala Plus Two Financial Management, assets are classified by how quickly they turn into cash:

• (a) Fixed assets — held for long-term use in the business (land, building, machinery); not meant to be converted to cash within a year.
• (b) Current assets — expected to be converted into cash within one year or one operating cycle: cash in hand/at bank, debtors, bills receivable, inventory (stock), short-term marketable securities, prepaid expenses. Correct. …

The correct answer is (b) Cash in hand, which is a current asset.

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A debtor is a current asset because it is expected to be realised in cash within one year.

Current assets are held for a short period and are meant to be converted into cash within one operating cycle or a year — cash, debtors, stock and bills receivable. Debtors (money owed by customers) will be collected shortly, so they are current asset …

Assets of a relatively permanent nature, used in business operations over the long term, are known as Fixed Assets.

Business assets are broadly classified by how long they stay in a particular form:

• Fixed assets are acquired for use in business operations over a long period — such as land and buildings, plant and machinery, furniture and vehicles — and are not meant to be sold in the normal course of business. They support production/operations rather than being converted to cash in the short run, which is why they are described as being of a "relatively permanent nature."

• Current assets, in contrast, are assets that are expected to be converted into cash, sold, or consumed within the normal operating cycle (usually one year) — such as cash, debtors, stock/inventory and short-term investments. They keep rotating through the business cycle rather than staying in one form for long.

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Depreciation is a fall in value of fixed assets from long use; working capital sits in current assets that do not wear out, so they are not depreciated.

• Working capital is invested in current assets — cash, stock, debtors, bills receivable — which keep circulating and are turned back into cash within a short period (usually a year).
• Depreciation is charged only on fixed assets (plant, machinery, building) because they are used over many years and lose value through wear, tear and obsolescence. …

Correct option: (c) Building — it is a long-term (fixed) asset.

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Current assets get converted into cash within one year.

Current assets are assets held by a business for a short duration, meant to be converted into cash, sold, or consumed during the normal course of business operations. The standard accounting definition used in Indian company financial statements classifies an asset as 'current' if it is expected to be realised in cash, sold, or consumed within twelve months (one year) from the reporting date, or within the business's normal operating cycle if that is longer. Examples include cash and bank balances, debtors/receivables, inventory (stock), and short-term …

Trademarks are intangible fixed assets, not current assets, because they provide long-term benefits and are not meant for conversion into cash within a year.