When Using the Current/noncurrent Method, Current Assets Are Defined as

question 62

Multiple Choice

When using the current/noncurrent method, current assets are defined as

• A)inventory that is currently salable.
• B)assets with a maturity of one year or less.
• C)assets with a maturity of 90 days or less.
• D)none of the above

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Definitions:

Property, Plant, and Equipment

Property, Plant, and Equipment (PP&E) are tangible assets that are expected to be used in operations for more than one period.

Patent

An exclusive right to sell or produce one’s discovery or invention. A patent is good for 20 years.

Copyright

The exclusive right that is granted by the federal government to sell and reproduce literary, musical, or artistic works for a period of time.

Plant Asset

Long-term tangible assets that are used in the operations of a business and are not intended for sale, such as machinery, buildings, and equipment.