A Current Asset Is

question 22

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 a relatively short period of time.

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Definitions:

Income Distribution

The way total income is shared among individuals or groups within an economy or organization.

Net Income

A company's total earnings or profit; calculated as revenues minus expenses, taxes, and the cost of goods sold.

Personal Use

Utilization of property or goods in a manner primarily for the individual's own consumption, enjoyment, or benefit, rather than for business or commercial purposes.

Capital Contributions

Monetary or non-monetary assets that are provided to a company by its owners or shareholders to increase its equity.