Which of the Following Is Not a Current Asset

question 6

Multiple Choice

Which of the following is not a current asset?

• A) an investment in a money market mutual fund.
• B) money due to suppliers.
• C) inventory of raw materials
• D) unpaid customer bills.

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Definitions:

Conversion Costs

The sum of direct labor and manufacturing overhead costs, representing the costs to convert raw materials into finished goods.

Process Costing

A costing method used for homogenous products, where costs are accumulated throughout the production process.

Weighted-Average Method

A costing method that calculates the cost of goods sold based on the average cost of all similar items in inventory.

Conversion Costs

The sum of labor and overhead expenses required to convert raw materials into finished products.