Which Item Is a Current Asset

question 88

Multiple Choice

Which item is a current asset?

• A)Cash - regardless of whether it has a positive or negative balance.
• B)Cash equivalents.
• C)Cash that will be used to close a plant in eighteen months.
• D)Restricted cash that will not be used within the upcoming year.

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Definitions:

Criminal Matters

Issues or cases involving violations of laws that relate to conduct considered harmful or dangerous to society as a whole.

Diversity-of-Citizenship

A basis for federal court jurisdiction over a case involving parties from different states or countries.

Corporation

A legal entity recognized by law as separate from its owners, with its own rights, responsibilities, and liabilities.

State of Incorporation

The specific U.S. state in which a company is legally registered to do business.