Assets Are Classified as Either Current or Non-Current

question 13

Multiple Choice

Assets are classified as either current or non-current. Current assets are:

• A) expected to be turned into cash within 12 months.
• B) goodwill.
• C) the infrastructure assets.
• D) all of the above.

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Definitions:

Book Value

The net value of an asset or company calculated by total assets minus intangible assets (patents, goodwill) and liabilities.

Accumulated Depreciation

The total amount of depreciation expense that has been charged to a fixed asset since it was in service, reducing its book value.

Accumulated Depreciation

The cumulative depreciation of an asset up to a single point in its life, reflecting the loss of value over time.

Fair Market Value

The price at which an asset would sell in the marketplace, assuming both buyer and seller are knowledgeable, willing, and under no pressure to buy or sell.