What Is the Key Distinction Between Current and Non-Current Assets

question 24

Multiple Choice

What is the key distinction between current and non-current assets?

• A) Current assets will be used up or converted to cash within one year or one operating cycle.
• B) Non-current assets are assets which do not lose their value over time.
• C) Current assets always have lower balances than non-current assets.
• D) Non-current assets will not be used until the future.

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Definitions:

Money

A medium of exchange that is widely accepted in transactions for goods and services, acting as a unit of account, a store of value, and sometimes, a standard of deferred payment.

Precious Metals

Rare, naturally occurring metallic elements of high economic value, which are often used as investment commodities, jewelry, and in industrial applications.

Paper Dollar

A term referring to United States currency notes made of paper, as opposed to coins or digital currency.

Collectibles

Items of personal or aesthetic value, often rare or unique, that are sought after and collected by enthusiasts.