The Basis for Classifying Assets as Current or Noncurrent Is

question 120

Multiple Choice

The basis for classifying assets as current or noncurrent is the period of time normally required by the accounting entity to convert cash invested in

• A) inventory back into cash, or 12 months, whichever is shorter.
• B) receivables back into cash, or 12 months, whichever is longer.
• C) tangible fixed assets back into cash, or 12 months, whichever is longer.
• D) inventory back into cash, or 12 months, whichever is longer.

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Definitions:

Ducts

Tubes or passages in the body through which fluids pass.

Positron-Emission Tomography

A diagnostic imaging test that uses a radiotracer to visualize and measure changes in metabolic processes and in other physiological activities including blood flow, regional chemical composition, and absorption.

Radio Waves

Electromagnetic waves with the longest wavelengths in the electromagnetic spectrum, used in communication systems to transmit data over long distances.

Magnetic Fields

A vector field that describes the magnetic influence on moving electric charges, electric currents, and magnetic materials.