Which of the Following Would Not Be Classified as a Current

question 22

Multiple Choice

Which of the following would not be classified as a current asset?

• A) cash
• B) marketable securities
• C) receivables
• D) inventories
• E) investments

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Definitions:

Historical Cost

The original monetary value of an asset or investment at the time of its purchase or acquisition.

Representationally Faithful

A qualitative characteristic of financial information that ensures the reported data accurately reflects the economic transactions and events.

Going Concern Assumption

The Going Concern Assumption is an accounting principle that assumes a company will continue to operate and not go bankrupt or be liquidated in the foreseeable future.

Liquidation

The process of winding up a company's financial affairs by selling its assets to pay off its debts.