Which of the Following Will Be Affected by a Reclassification

question 26

Multiple Choice

Which of the following will be affected by a reclassification of assets from current to non-current?

• A) total assets
• B) current ratio
• C) income summary
• D) accounts payable turnover

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Definitions:

Limited Liability Partnership

An agreement where a number of partners have their liabilities restricted, such that they are not individually accountable for the business's financial obligations.

Limited Liability Company

A flexible form of enterprise that blends elements of partnership and corporate structures, protecting members against personal liability beyond their investment.

General Partnership

A form of business partnership where all partners share both the management and the liability for the company's debts.

Capital Balance

The amount of money that an entity has in its capital account, reflecting the net worth contributed by the owners/shareholders plus retained earnings.