Name and Define the Three Types of Costs That May

question 5

Essay

Name and define the three types of costs that may be incurred by ending a relationship.

---

Definitions:

Current Assets

Assets that are expected to be converted into cash, used, or consumed within one year or the operating cycle, whichever is longer.

Long-term Investments

Investments in securities or other assets that a company intends to hold for a period exceeding one year to earn revenue or profit.

Intangible Assets

Non-physical assets that have economic value due to their advantages or rights (e.g., patents, trademarks, goodwill).

Closing Entries

Journal entries made at the end of an accounting period to transfer balances from temporary accounts to permanent accounts and prepare the accounts for the next period.