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WAEC Accounting 2024 Objective — Question 20

Question 20 of 50 from the West African Examinations Council (WAEC) Accounting 2024 Objective paper, with the correct answer and a full explanation.

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An item is classified as a current asset if it is

  • A. purchased for long-term use
  • B. expected to be realized within the balance sheet dateCorrect
  • C. fictitious in nature
  • D. neither cash nor cash equivalent

Explanation

A current asset is one whose value is expected to be realized (turned into cash) within a year of the balance sheet date.

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