Which Item Is a Current Asset

question 88

Multiple Choice

Which item is a current asset?

• A)Cash - regardless of whether it has a positive or negative balance.
• B)Cash equivalents.
• C)Cash that will be used to close a plant in eighteen months.
• D)Restricted cash that will not be used within the upcoming year.

Describe the implications of private ownership and free exchange.

Understand the economic rationale for specialization and division of labor.

Analyze the impact of trade on economic output and progress.

Comprehend how exchange creates value and facilitates economic progress.

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Definitions:

Price Elastic

The responsiveness of the quantity demanded or supplied of a good to a change in its price. High elasticity means quantity changes significantly with price changes.

Necessity

A requirement or indispensability; something that cannot be done without.

Midpoint Method

A technique used in economics to calculate the elasticity of demand or supply, measuring the percentage change in quantity demanded or supplied relative to a percentage change in price.

Price Elasticity

A metric determining how the quantity of a good demanded fluctuates with a shift in that good's price.