The Classification of Assets into Current or Non-Current in the Statement

question 71

Multiple Choice

The classification of assets into current or non-current in the statement of financial position will provide useful information on the short-term solvency of the entity:

• A) when the entity supplies goods or services within a clearly identifiable normal operating cycle.
• B) when the operating cycle of the entity is greater than 12 months.
• C) when the operating cycle of the entity is less than 12 months.
• D) when the entity is a financial institution.

---

Definitions:

Med-Arb

A hybrid dispute resolution process that combines both mediation and arbitration, where a neutral person mediates a dispute but can also make a binding decision if necessary.

Federal District Courts

The general trial courts of the United States federal court system where civil and criminal cases are filed and heard.

ADR

Alternative Dispute Resolution; methods for resolving disputes without litigation, such as arbitration or mediation.

Mediation

is a form of alternative dispute resolution where a neutral third party helps disputing parties to reach a mutually acceptable agreement.