An Asset Is Classified as Current When

question 37

Multiple Choice

An asset is classified as current when:

• A) it is expected to be realised or intended for sale or consumption in the entity's normal operating cycle.
• B) the item is held form trading.
• C) it is cash or cash equivalent.
• D) All of the given answers are correct.

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Definitions:

Sales

Deals involving the swapping of products or services for monetary value, which constitute the main income stream for numerous companies.

Forecasting

The process of making predictions about future events or trends based on historical data and analysis, commonly used in finance and operations planning.

Activity-Based Budgeting

A budgeting approach where budgets are created based on activities and processes, taking into consideration the costs of all activities necessary to produce and sell a product.

Budget System

A systematic process used by businesses and organizations for planning, controlling, and allocating financial resources.