What Is the Key Distinction Between Current and Non- Current

question 105

Multiple Choice

What is the key distinction between current and non- current assets?

• A)Current assets will be used up or converted to cash within one year or one operating cycle.
• B)Non- current assets will not be used until the future.
• C)Non- current assets are assets which do not lose their value over time.
• D)Current assets always have lower balances than non- current assets.

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Definitions:

Corporate Earnings And Profits

The measure of a corporation's ability to generate income over its costs and expenses within a specific period.

Return Of Capital

A payment to investors that returns some of their original investment, thus reducing the investor's cost basis in the investment.

Capital Gain

The profit earned from the sale of an asset that has increased in value over its purchase price, often applied to stocks, bonds, and property.

Stockholder Basis

The amount invested in a company's stock, used for tax purposes to determine gain or loss on the sale or disposition of the stock.