It Is Not True That Current Assets Are Assets That

question 47

Multiple Choice

It is not true that current assets are assets that a company expects to

• A) realize in cash within one year.
• B) sell within one year.
• C) use up within one year.
• D) acquire within one year.

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Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the profitability of a company's core activities.

Periodic Inventory System

An accounting method where inventory is updated and cost of goods sold is calculated at the end of an accounting period.

FIFO

FIFO stands for "First-In, First-Out," an inventory valuation method where goods first acquired are sold or used first, ensuring that older inventory is used before newer inventory.

Ending Inventory

The aggregate worth of merchandise ready for purchase at the conclusion of a financial period.