Question : ---------------- are the assets which are likely to be converted into cash or cash equivalents within 12 months from the date of the Balance Sheet or within the period of an operating cycle.
Option 1: Liquid Assets
Option 2: Current Assets
Option 3: Current liabilities
Option 4: Total Assets
Correct Answer: Current Assets
Solution : Answer = Current Assets
Current assets
are assets expected to be converted into cash or cash equivalents within 12 months from the balance sheet date or within the operating cycle. Examples include cash, accounts receivable, inventory, and short-term investments. They are crucial for assessing a company's short-term liquidity and financial health.
Hence, the correct option is 2.
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