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

question 51

Multiple Choice

The classification of assets into current or non-current in the balance sheet 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.
• E) None of the given answers.

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Definitions:

Spinal Cord

The major column of nerve tissue that is connected to the brain and lies within the vertebral canal and from which the spinal nerves emerge.

Metal Belt Buckle

A device usually made of metal that fastens together the two ends of a belt or strap.

Cold and Pressure Spots

Sensory receptors in the skin that detect changes in temperature and pressure, contributing to the senses of touch and thermal perception.

Sense

A faculty by which the body perceives an external stimulus; one of the faculties of sight, smell, hearing, taste, and touch.