A sometimes-confusing aspect of the definition of current assets is the inclusion of prepaid items. Prepaid expenses

Question:

A sometimes-confusing aspect of the definition of current assets is the inclusion of prepaid items. Prepaid expenses are not usually converted into cash in the current period. How do rationalize this classification issue?

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...