(P) Pearson Learning: The Financial Statements QUESTION 0 Current assets include __ ret IIIIIIIIIIIII ANSWER accounts receivable and equipment cash and accounts receivable prepaid expenses and building cash and land IDONT KNOWYET

The correct answer is **cash and accounts receivable**.<br /><br />Current assets are assets that are expected to be converted into cash or used up within one year or one operating cycle, whichever is longer. Cash and accounts receivable both fit this definition.<br /><br />* **Cash** is the most liquid asset and is readily available.<br />* **Accounts Receivable** represents money owed to the company by customers for goods or services already provided. These are typically collected within a relatively short period.<br /><br />The other options are incorrect because:<br /><br />* **Equipment and buildings (and land)** are long-term assets, meaning they are not expected to be converted to cash or used up within one year.<br />* **Prepaid expenses** are current assets, but when paired with *building* which is a long-term asset, the answer choice becomes incorrect. While prepaid expenses are current assets, land is not.<br />