Which of the Following Would Not Be Classified as a Current

question 135

Multiple Choice

Which of the following would not be classified as a current asset?

• A)Cash
• B)Accounts payable
• C)Supplies
• D)Inventory

Understand cost calculations under absorption costing.

Understand cost calculations under variable costing.

Differentiate between absorption and variable costing.

Calculate net income under variable and absorption costing.

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Definitions:

General Journal

A general journal is an accounting ledger that is used to record all transactions of a business in chronological order, prior to their transfer into specific accounts in the general ledger.

General Ledger

A comprehensive accounting record of a company’s financial transactions over its life, encompassing all accounts.

Chart of Accounts

An organized list of all accounts in a business entity's financial records, each with a unique account number.

Account Names

Specific titles given to accounts that reflect the nature of the transactions they represent in the accounting records.