Which of the Following Would Be Considered a Current Asset

question 5

Multiple Choice

Which of the following would be considered a current asset?

• A) money in a checking account
• B) accounts payable
• C) real estate
• D) computer software

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Definitions:

Term Deposits

Fixed amount of money held at a financial institution for a fixed term, earning a guaranteed interest rate.

Simple Interest

Simple interest is a method of calculating the interest charge on a loan based on the original principal amount and the interest rate, without compounding.

Equivalent

Equal in value, amount, function, meaning, etc., often used in mathematics and chemistry.

Per Annum

A Latin term meaning "per year," often used in financial contexts to describe rates or amounts calculated over a yearly basis.