What Are Assets That Are Not Easily Converted into Cash

question 21

Multiple Choice

What are assets that are not easily converted into cash or are expected to be held for longer than a year called?

• A) current assets
• B) fixed assets
• C) intangible assets
• D) long-term equity

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Definitions:

Incentives

Benefits, rewards, or compensation offered to motivate specific actions or behaviors by individuals or organizations.

SEC

Stands for the Securities and Exchange Commission, a U.S. federal agency responsible for regulating the securities markets and protecting investors.

Loan Covenant

A condition in a loan agreement that the borrower must comply with, which can include financial requirements or operational actions.

Financial Statements

Financial statements are formal records of the financial activities and position of a business, person, or other entity, presenting the results of operation and the financial condition including balance sheet, income statement, and cash flow statement.