_____ Will Be Listed as a Liability on Your Balance

question 83

Multiple Choice

_____ will be listed as a liability on your balance sheet.

• A) A money market deposit account
• B) A checking account
• C) Equipment
• D) The cash value of a life insurance policy
• E) An education loan

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Definitions:

Restrictive Short-term Policy

A financial policy aimed at minimizing the amount of working capital to reduce short-term financing costs, often at the risk of running low on liquidity.

Current Assets

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

Cash Flow Time Line

A visual representation that maps out all cash inflows and outflows of a project or investment over time.

Operating Cycle

The period from when a company acquires inventory to when it collects cash from the sale of that inventory, indicating the efficiency of a company's operations.