Which of the Following Current Assets Will Not Generate Cash

question 3

Multiple Choice

Which of the following current assets will not generate cash in the future?

• A) prepayments
• B) accounts receivable
• C) inventory
• D) marketable securities
• E) notes receivable

Acknowledge the cost and complexity of the collection process in business operations.

Know the four major components of a firm's credit policy.

Evaluate the trade-off between offering discounts for cash payments and its impact on sales and revenues.

Interpret the terms and conditions of sales agreements, including payment and discount schedules.