A Current Asset Is

question 52

Multiple Choice

A current asset is

• A)the last asset purchased by a business.
• B)an asset which is currently being used to produce a product or service.
• C)usually found as a separate classification in the income statement.
• D)expected to be converted to cash or used in the business within one year or one operating cycle, whichever is longer.

Calculate the impact of changes in sales volume on net operating income.

Understand the concept of break-even point in both sales value and unit sales.

Calculate the net operating income based on varying levels of sales, expenses, and changes in sales strategy.

Determine the effects of fixed and variable expenses on profitability.

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Definitions:

Dram Shop Act

A state statute that imposes liability on the owners of bars and taverns, as well as those who serve alcoholic drinks to the public, for injuries resulting from accidents caused by intoxicated persons when the sellers or servers of alcoholic drinks contributed to the intoxication.

Social Hosts

Individuals who provide alcohol to guests in a social setting, potentially facing legal liabilities if guests cause harm while intoxicated.

Liability

A legal obligation or responsibility that may result in the payment of damages or compliance with certain acts, often associated with the outcome of lawsuits or breaches of contract.

Good Samaritan Statutes

Laws that offer legal protection to individuals who voluntarily provide assistance in an emergency to those in need.