Which of the Following Are True Concerning Nonoperating Assets That

question 13

Multiple Choice

Which of the following are true concerning nonoperating assets that can be converted into cash on short notice and at low cost?
I.They are classified as excess cash and marketable securities.
II.Short-term losses can be deducted directly from their value,bypassing the income statement.
III.Under International Financial Reporting Standards (IFRS) ,they are to be reported at fair market value on the balance sheet.
IV.Under U.S.Generally Accepted Accounting Principles (GAAP) ,they are to be reported at fair market value on the balance sheet.

• A)I and IV only.
• B)I,II,and III only.
• C)I,III,and IV only.
• D)III and IV only.

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Definitions:

Order Visibility

The ability to track and view the status of orders at every stage of the supply chain, from initial placement to final delivery.

Distribution Network

The systematic arrangement of distribution centers, transportation routes, and hubs used to distribute products to customers.

Supply Chain Drivers

The key factors that directly impact the performance and efficiency of the supply chain, including facilities, inventory, transportation, information, sourcing, and pricing.

Cost

The amount of money or resources expended to acquire an asset, produce a product, or deliver a service.