Which of the Following Is an Example of a Current

question 11

Multiple Choice

Which of the following is an example of a current asset?

• A)Inventory
• B)Retained earnings
• C)Accounts payable
• D)Plant and equipment
• E)Common stock

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Definitions:

Plant Asset

A long-term asset used in the production of goods or services, not expected to be consumed or converted into cash within a year.

Book Value

The worth of an asset as reported in the balance sheet, determined by subtracting any depreciation from the asset's initial cost.

Depreciable Cost

The total amount that an asset’s value can be depreciated over its useful life, excluding salvage value.

Salvage Value

The conjectured remain value of an asset at the end of its productive life.