Classification of Assets on the Balance Sheet

Medium Financial Statements Balance Sheet

When analyzing a company's Balance Sheet, it is crucial to understand the classification of assets and liabilities. Assets are generally divided into current and non-current categories, while liabilities are similarly categorized. Based on this, which of the following statements correctly reflects the classification of assets on a Balance Sheet?

All assets due to be received within one year are classified as non-current assets.

Current assets are those expected to be converted into cash or consumed within one year.

Non-current assets include items like cash and accounts receivable.

Hint

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