Which One of the Following Groups of Accounts Contains Only

question 53

Multiple Choice

Which one of the following groups of accounts contains only current assets?

• A)Inventory, accounts receivable, equipment.
• B)Cash, equipment, copyrights.
• C)Cash, accounts receivable, merchandise inventory.
• D)Patents, copyrights, and trademarks.

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Definitions:

Cash Outflow

The movement of money out of a business or financial account, typically as payment for expenses, assets, or liabilities.

Fixed Cost

A business expense that does not vary with the level of goods or services produced over the short term.

Interest Rate

The rate, expressed as a percentage of the principal amount, that a borrower must pay to a lender to use their assets.

Disbursement Float

The time lag between when a check is issued by a payer and when the funds are deducted from the payer's bank account.