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Cash and savings that can be converted to cash quickly and easily are:

A. current assets
B. current liabilities
C. fixed assets
D. long-term liabilities

Sagot :

GinnyAnsweridn

Final answer:

Current assets are cash and assets that can be quickly converted to cash; liquidity is essential for meeting short-term obligations; understanding current vs. non-current assets is critical in financial reporting.


Explanation:

Current assets are cash and other assets that can be easily converted to cash quickly, typically within a year. These assets include cash and cash equivalents, accounts receivable, and short-term investments.

Liquidity is crucial for organizations as it ensures they have the ability to meet short-term obligations and fund day-to-day operations efficiently. Cash and cash equivalents, being the most liquid assets, provide organizations with financial flexibility.

Understanding the difference between current and non-current assets is vital in financial reporting. Non-current assets are long-term investments or assets that will not be converted into cash within a year.


Learn more about Current assets here:

https://brainly.com/question/33349344


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