Which of the Following Should Not Be Considered as a Current

question 59

Multiple Choice

Which of the following should not be considered as a current asset in the balance sheet?

• A) The cash surrender value of a life insurance policy carried by a corporation, the beneficiary, on its president.
• B) Marketable securities purchased with cash as a short-term investment.
• C) Instalment notes receivable due within 12 months in accordance with normal trade practice.
• D) Prepaid taxes which cover assessments of the following operating cycle of the business.

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Definitions:

Export Goods

products or services that are produced domestically but sold to buyers in other countries.

Acquire Dollars

The process of obtaining U.S. currency, which can involve exchanging foreign money, earning it, or investing.

Living Standards

A measure of the wealth, comfort, material goods, and necessities available to a person, group, or society.

Opportunity Cost

The financial impact of rejecting the subsequent preferable alternative while opting for one choice over another.