Answer:
For most businesses, the period of time used to determine whether an asset or liability is current is typically one year. This means that assets or liabilities that are expected to be converted into cash, sold, or consumed within the next 12 months are considered current. Current assets include items such as cash, accounts receivable, and inventory. Current liabilities include items such as accounts payable, short-term loans, and taxes payable. It's important to note that different industries may have different time periods to determine current assets and liabilities, and also some companies have different accounting methodologies that can change the time frame.