Which of the Following Is the Proper Order to List

question 16

Multiple Choice

Which of the following is the proper order to list current assets on the balance sheet?

• A)Cash, short term investments, inventory, prepaid expenses
• B)Cash, short-term investments, prepaid expenses, accounts receivable
• C)Cash, inventory, accounts receivable, short-term investments
• D)Cash, accounts receivable, short-term investments, inventory

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Definitions:

Personal Savings

The portion of an individual’s income that is not spent on consumption and is set aside for future use, typically in a savings account or investment.

Marginal Cost

The increase in cost that arises from producing one additional unit of a product or service.

R&D Financing

The process of funding research and development activities, typically involving significant investment in innovation and technology to spur growth and competitive advantage.

R&D Activities

Research and Development activities aimed at innovating and improving products or processes.