Biological Assets May Be Difficult to Classify as Current or Non-Current

question 20

Multiple Choice

Biological assets may be difficult to classify as current or non-current because:

• A) The asset may unexpectedly become ill or die.
• B) The value of the asset may change depending on management's intention.
• C) The operating cycle of the entity may be unknown.
• D) The same physical assets may have either a shorter or longer life span depending on management intention.

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Definitions:

Net Income

The amount of profit that remains after all operating expenses, taxes, and costs have been subtracted from total revenue.

Net Cash

Net cash refers to the amount of cash that remains after subtracting a company's total cash outflows from its total cash inflows, indicating the company's liquidity position.

Income Taxes

Charges imposed by the authorities on earnings from companies and individuals within their territory.