An Item That May Be Converted to Cash Within One

question 112

Multiple Choice

An item that may be converted to cash within one year or one operating cycle of the firm is classified as a:

• A) current liability.
• B) long-term asset.
• C) current asset.
• D) long-term liability.

---

Definitions:

Find Slope

The process of determining the steepness or incline of a line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Passing Through

A term used to indicate that a line or curve intersects or goes exactly through a specific point or points on a graph.

Depreciated Value

The reduced value of an asset over time due to wear and tear, obsolescence, or aging.

Y-intercept

The point where a line crosses the y-axis of a graph, represented by the value of y when x equals zero.