It is accurate (TRUE) to say that current assets are those that are likely to be used up or converted into cash within the next year as a result of normal business operations.
A corporation expects to use up, convert into cash, or sell a current asset, also known as a liquid asset, within one fiscal year or operational cycle. On the other hand, non-current assets are long-term assets that are difficult to quickly turn into cash within a year. All assets possessed by the company that can be turned into cash within a year are recorded in the Current Assets account, which is a line item on the balance sheet under the Assets heading. Because it shows a company's ability to fulfill its short-term obligations and short-term liquidity, the Current Assets account is significant.
Cash and cash equivalents, accounts receivable, inventories, and different prepaid expenses are examples of current assets.
Therefore, the statement is TRUE.
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