Which of the Following Items Is NOT Normally Considered a Current

question 37

Multiple Choice

Which of the following items is NOT normally considered a current asset?

• A) Accounts receivable.
• B) Inventory.
• C) Bonds.
• D) Cash.
• E) Short-term,highly-liquid,marketable securities.

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Definitions:

WACC

Abbreviation for Weighted Average Cost of Capital, a calculation of a firm's cost of capital in which each category of capital is proportionately weighted, reflecting the cost of each type of capital (debt, equity, etc.) to the overall business.

Debt-Equity Ratio

A financial benchmark illustrating the ratio of debt to equity used in asset financing for a company.

Tax Rate

The tax obligation calculated as a percentage of income for private individuals or companies.

Net Present Value

A calculation used to determine the value of an investment by estimating future cash flows and discounting them to their present value.