Which of the Following Is Not a Current Asset

question 12

Multiple Choice

Which of the following is not a current asset?

• A) marketable securities
• B) material inventory
• C) unearned rent income
• D) prepaid interest
• E) prepaid insurance

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Definitions:

Cost of Goods Sold

The immediate expenses related to the manufacture of products sold by a business, encompassing both materials and workforce.

Perpetual System

An inventory management method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

FIFO Perpetual

An inventory management system where the first items purchased (First-In) are the first to be sold or used (First-Out), continuously updated.

Cost of Goods Sold

The total cost directly tied to the production of the goods sold by a company, including materials and labor.