Which of the Following Statements Is True

question 123

Multiple Choice

Which of the following statements is true?

• A) Property, plant, and equipment are classified as intangible assets on the statement of financial position.
• B) Current liabilities are debts expected to be paid out of current assets within the next year.
• C) Current assets are resources of a company which might include cash and copyrights.
• D) Accumulated depreciation is the amount of depreciation on the income statement for the current year.

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Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to record any unrecognized income or expenses for that period.

Sales Tax

Sales tax is a government levy imposed on the sale of goods and services, collected by the seller from the buyer at the point of sale.

Cash Sales

Transactions in which payment is received at the time of sale, typically in cash or equivalent.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that aim to make financial statements comparable across international boundaries.