Which of the Following Is a Current Asset

question 40

Multiple Choice

Which of the following is a current asset?

• A)Cash surrender value of a life insurance policy of which the company is the beneficiary.
• B)Investment in equity securities for the purpose of controlling the issuing company.
• C)Cash designated for the purchase of tangible fixed assets.
• D)Trade instalment receivables normally collectible in eighteen months.

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Definitions:

Work in Process Inventory

Goods that are in the process of being manufactured but are not yet completed.

Direct Labor Hour

A measure of the labor time directly involved in the production of goods, often used in costing and budgeting.

Standard Quantities

Standard quantities refer to the predetermined amounts of material, labor, and overhead that should be used in the production of a good or service, serving as a basis for cost control and efficiency analysis.

Standard Rates

Predetermined costs or charges used for billing, budgeting, or for setting up baseline expectations for financial performance.