Current Asset Definition

Question 1

What is the first condition that makes the definition of a current asset?

Answer 1

• The entity expects to realise (convert to cash), sell or consume the asset within the next 12 months

Question 2

What is the second condition that makes the definition of a current asset?

Answer 2

• The entity expects to realise (convert to cash), sell or consume the asset within its normal operating cycle

Question 3

What is the third condition that makes the definition of a current asset?

Answer 3

• The asset is cash (or a cash equivalent)

Question 4

What is the fourth condition that makes the definition of a current asset?

Answer 4

• The asset is to be used for trading