Which of the Following Is Not Classified as a Current

question 111

Multiple Choice

Which of the following is not classified as a current asset?

• A) supplies
• B) short-term (trading) investments
• C) a fund to be used to purchase a building within the next year
• D) equipment with an estimated useful life of five years

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Definitions:

Company Equity

The value of a company distributed among its owners or shareholders, representing their ownership interest in the company.

Securities Laws

Legal frameworks and regulations that govern the issuance, trading, and sale of securities to protect investors, ensure fair markets, and prevent financial fraud.

Taxable Item

A taxable item is any product or service subject to tax by governing authorities when sold or purchased.

Founders' Agreement

A legal document outlining the roles, responsibilities, and equity ownership of the founding members of a company.