If the Operating Cycle of a Business Is Fifteen Months

question 47

Multiple Choice

If the operating cycle of a business is fifteen months, which of the following statement is true?

• A) Cash set aside for a purchase of equipment will be shown as a current asset.
• B) A note receivable that is due one year and two months from the balance sheet date will be shown as a current asset.
• C) Balance sheets should be prepared more often than income statements.
• D) A note, that is payable by the business two years from the balance sheet date, will be shown as a current liability.

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Definitions:

Validity

The extent to which a test, assessment, or measurement accurately measures what it claims to measure.

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The level of consistency and stability in the results from an evaluation method over a period.

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In economics, the total satisfaction received from consuming a good or service.

Big Five Personality Dimensions

A model outlining five broad dimensions of human personality: openness to experience, conscientiousness, extraversion, agreeableness, and neuroticism.