Assets Are Classified as Either Current or Non-Current

question 5

Multiple Choice

Assets are classified as either current or non-current. Current assets are:

• A)goodwill.
• B)expected to be turned into cash within 12 months.
• C)the infrastructure assets.
• D)all of the above.

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Definitions:

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of a product or service.

Average Total Cost

The total cost of production divided by the total quantity produced, representing the average cost per unit of output.

Implicit Costs

The opportunity costs of using resources owned by the business for its operations, not directly paid out in cash.

Delivery Truck

A vehicle specifically designed for transporting goods from one location to another.