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:

Cash Dividends

Distributions of a corporation's earnings to shareholders as a return on their investment, typically in the form of cash.

Asset Balances

The values of all the assets that a company has listed on its balance sheet, these values are assessed at the end of a reporting period.

Net Income

The profit a company has after deducting all its expenses from its total revenues, also known as the bottom line.

Paid Dividends

Cash or other assets distributed to shareholders out of the company's earnings.