The Classification of Assets into Current or Non-Current in the Statement

question 71

Multiple Choice

The classification of assets into current or non-current in the statement of financial position will provide useful information on the short-term solvency of the entity:

• A) when the entity supplies goods or services within a clearly identifiable normal operating cycle.
• B) when the operating cycle of the entity is greater than 12 months.
• C) when the operating cycle of the entity is less than 12 months.
• D) when the entity is a financial institution.

Understand the fundamental principles and objectives of accounting.

Differentiate between internal and external users of accounting information.

Identify the types of occupations available in the field of accounting.

Recognize the regulatory framework and the importance of ethics in accounting.

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