An Item That Can Be Converted into Cash or Used

question 93

Multiple Choice

An item that can be converted into cash or used up during the normal operating cycle is

• A) a current asset.
• B) Plant and Equipment.
• C) a current liability.
• D) a long-term liability.

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Definitions:

Quasi-Contracts

Legal agreements created by the courts between two parties who did not have a previous obligation to each other, in order to prevent unjust enrichment.

Implied-In-Fact Contracts

Agreements that are not written but formed through the actions or conduct of the parties involved, implying mutual consent.

Legally Unenforceable

Pertains to a contract or obligation that, due to a lack of certain legal requisites, cannot be upheld by a court of law.

Offeror

The party in a contract negotiation who proposes a set of terms to another party (the offeree), initiating the offer for a contract.