Which of the Following Is True of Current Assets

question 100

Multiple Choice

Which of the following is true of current assets?

• A) The time of conversion of current assets to more liquid form is relatively unpredictable.
• B) They are used to fund long-term operations and pay long-term expenses.
• C) They are more profitable because they add more value to the product than that provided by fixed assets.
• D) They are sources of short-term financing for a firm.

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Definitions:

Self-Reference Effect

The tendency for information to be better recalled when it is related to oneself.

Psychological Professor

An academic expert who teaches and conducts research in psychology.

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Serial-Position Effect

A psychological phenomenon in which a person tends to remember the first and last items in a series better than the middle items.