A Current Asset Is

question 40

Multiple Choice

A current asset is

• A) an expense incurred in the 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 realized in cash, sold or consumed within one year of the balance sheet.

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Definitions:

Pre-acquisition Entry

Accounting entries made to record the assets and liabilities acquired from another company before the actual acquisition.

Shares in Subsidiary

Ownership stakes held in a subsidiary company by the parent company or other shareholders.

Acquisition Date

The date on which control of the assets and operations of an acquired company is transferred to the buyer.

Acquired Goodwill

The excess of the purchase price over the fair value of the net assets acquired in a business combination, reflecting intangible assets like brand reputation, customer relationships, etc.