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:

Domestic Wine

Wine that is produced within the same country the consumer is in, as opposed to imported wine.

Standard Form

A way of structuring arguments or expressions according to fixed rules, often to clarify logical relations.

Categorical Conclusion

A statement resulting from a syllogistic argument, characteristic of being definitive and relating to categories or classes.

Argument

An explanation or collection of explanations offered to justify the correctness or incorrectness of a particular action or notion to persuade others.