There Are Three Kinds of Assets: Current,fixed,and Long-Term

question 79

True/False

There are three kinds of assets: current,fixed,and long-term.

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Definitions:

Accounts Receivable

Financial obligations of customers towards a company for delivered but unpaid goods or services.

Net Working Capital

A calculation of a firm's ability to cover its short-term obligations, determined by subtracting current liabilities from current assets.

Inventory

The total amount of goods and materials held in stock by a business or warehouse.

Depreciation

The systematic reduction of the recorded cost of a fixed asset over its useful life to reflect wear and tear or obsolescence.