A Current Asset Is

question 38

Multiple Choice

A current asset is

• A) an expense, such as rent, that is paid before the upcoming period in which it is due.
• B) a nonphysical asset, such as a patent or trademark, that has economic value in the form of expected benefit.
• C) an amount due from a customer who has purchased goods on credit.
• D) an asset with long-term use or value, such as land, buildings, and equipment.
• E) an asset that can or will be converted to cash within the following year.

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Definitions:

Taxable Income

The portion of an individual's or entity's income used to determine how much tax is owed to the government in a specific tax period.

Untaxed Income

Earnings that are not subject to taxation by governmental authorities.

Assets

Resources owned by an individual or business that have economic value and can be used to meet debts or commitments.

Brainstorming

A group creativity technique designed to generate a large number of ideas for the solution of a problem.