Which of the Following Is Not Classified Properly as a Current

question 93

Multiple Choice

Which of the following is not classified properly as a current asset at December 31 2022?

• A)Accounts receivable
• B)A certificate of deposit maturing July 2023
• C)A prepaid insurance policy which provides coverage through November 2023
• D)A note receivable due in 2024

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Definitions:

Stock Repurchase

A stock repurchase is when a company buys back its own shares from the marketplace, often to increase the value of remaining shares.

Payables Turnover Rate

A financial efficiency ratio that measures how quickly a company pays off its suppliers by comparing net credit purchases to average accounts payable.

Cash Cycle

The period between the outlay of cash for the purchase of raw materials and the collection of cash from the sale of products, indicating the efficiency of a company's cash management.

Operating Cycle

The duration between the acquisition of inventory by a company and the collection of payment for the sales of that inventory.