When Classifying Assets and Liabilities

question 217

Multiple Choice

When classifying assets and liabilities:

• A)assets are classified as liquid and non-liquid.
• B)for most businesses the operating cycle is two years.
• C)furniture and fixtures are long-term assets.
• D)current liabilities include accounts receivable.

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Definitions:

Adrenocorticotropic Hormone

A hormone produced by the pituitary gland that stimulates the adrenal glands to release cortisol and other hormones.

Pituitary Gland

A small, pea-sized gland located at the base of the brain that produces hormones regulating important bodily functions.

Hyperthyroidism

A condition characterized by the overproduction of thyroid hormones by the thyroid gland, leading to a rapid metabolism.

Hypothyroidism

A condition where the thyroid gland does not produce enough thyroid hormone, leading to a slow metabolism.