Current assets are cash or other assets that are reasonably expected to be converted into cash, sold, or consumed within O one normal operating cycle one year or normal operating cycle, whichever is shorter O one year or normal operating cycle, whichever is longer one year Question 8 2 pts Which of the following assets is the most liquid? O buildings trademarks O finished goods O accounts receivable Question 9 2 pts To be considered "Level 2" when determining fair value, the value is determined using O Quoted prices for identical assets from an active market Adjusted quoted prices for similar assets Unobservable inputs O None of the above

1) Correct answer is one year, Because current assets are separated from other resources because a company is dependent on its current assets to fund ongoing operations and to pay current expenses.

2) Correct answer is Accounts receiveable, because In a business, liquidity refers to the ability to generate cash. Both merchandise and accounts receivable are considered "current assets" when a company typically expects to convert them into cash within the next year. But accounts receivable are considered more liquid of both.

3) Correct answer is Non of the above, because Level 2 assets are financial assets and liabilities that are difficult to value. Fair value can be determined based on data values ??or market values, but these assets are not regularly marketed. Level 2 asset values, sometimes called "mark-to-model" assets, can be estimated using simple models and extrapolation methods. These methods use known, observable prices as parameters.