Which of the Following Is Not Classified as a Current

question 82

Multiple Choice

Which of the following is not classified as a current asset?

• A)supplies
• B)short-term (trading) investments
• C)a fund to be used to purchase a building within the next year
• D)equipment with an estimated useful life of five years

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Definitions:

U.S. Government

The federal government of the United States, consisting of three branches: legislative, executive, and judicial.

Crowding-Out Effect

A situation where increased government spending leads to reduced investment in the private sector, typically because of higher interest rates or the use of available financial resources.

Keynesians

Economists who follow the theories of John Maynard Keynes, emphasizing the role of government intervention and fiscal policy in managing economic cycles.

Monetarists

Economists who suggest that fluctuations in the money supply are key in affecting national output in the short term and in determining the price level over an extended term.