Question

The term "permanent current assets" implies

A. the same thing as fixed assets.

B. nonmarketable assets.

C. some minimum level of current assets that are not self-liquidating.

D. inventory.

Answer 1

Permanent current assets refer to a minimum level of current assets that are not self-liquidating and are expected to remain in the business for the long term. They support the ongoing operations of the business.

Step-by-step explanation:

Permanent current assets refer to a minimum level of current assets that are not self-liquidating. This means that these assets are expected to remain in the business for the long term and not be sold off or consumed within a short period of time. They are typically assets that support the ongoing operations of the business, such as accounts receivable, inventory, and prepaid expenses.