What is the relationship between current assets and currentliabilities?
Chapter1: Financial Statements And Business Decisions
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What is the relationship between current assets and current
liabilities?
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Current assets: The assets which could be converted into cash within one year like accounts receivables, or marketable investments; or which could be used up within the completion of an operating cycle, like inventory, supplies and insurance, are referred to as current assets.
Current liabilities: The debt obligations owed by a company to creditors and suppliers and are to be paid within a year are referred to as current liabilities.
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