All of the Following Are Current Assets Except

question 152

Multiple Choice

All of the following are current assets except

• A) office equipment.
• B) cash.
• C) prepaid insurance.
• D) accounts receivable.
• E) marketable securities.

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Definitions:

Physical Inventory

A process where a business counts its entire inventory by hand at a specific point in time to verify stock quantities.

Cost Flow Assumption

An accounting method used to value inventory and determine the cost of goods sold, such as FIFO (First-In, First-Out) or LIFO (Last-In, First-Out).

Specific Identification

Specific identification is an inventory valuation method that tracks the cost of individual items in inventory and matches those costs with the items' actual sale.

Inventory System

A method for tracking the quantities, locations, and statuses of products a company has in stock, both for sales and production purposes.