Which of the Following Would Not Be Classified as a Current

question 61

Multiple Choice

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

• A) Investment securities (trading)
• B) Short-term investments
• C) Prepaid expenses
• D) Intangible assets

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Definitions:

Taxes

Taxes are compulsory financial charges or levies imposed by a government on individuals or entities to finance government spending and various public expenditures.

Aggregate Demand-Aggregate Supply Model

A macroeconomic model that explains price level and output through the relationship between aggregate demand and aggregate supply.

Long-Run Equilibrium

Refers to a state in an economy where all factors of production are efficiently utilized, and supply equals demand, leading to stable prices and full employment over time.

Money Supply

The aggregate financial resources present in an economy at a given time, which include currency, coinage, and the deposits in both current and savings accounts.