Which of the Following Is True of Current Assets

question 26

Multiple Choice

Which of the following is true of current assets?

• A) They include the long-term assets of a firm.
• B) They are resources that a firm expects to use up within a year.
• C) They include a firm's tangible assets, such as machinery and equipment.
• D) They are resources that a firm decides to set aside to pay its long-term liabilities.

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Definitions:

Restaurant

A business establishment that prepares and serves meals, snacks, and beverages to customers.

Departmental Gross Profit

The difference between sales and the cost of goods sold for a specific department, highlighting its profitability.

Revenue

An amount earned by performing services for customers or selling goods to customers; it can be in the form of cash or accounts receivable. A subdivision of owner’s equity: As revenue increases, owner’s equity increases.

Breakfast Department

A specific business unit within a hospitality organization that is responsible for managing and operating the breakfast service.