If an Investment Is to Be Held Only for a Short

question 27

Multiple Choice

If an investment is to be held only for a short time,it should be classified on the balance sheet as a ________.

• A)current liability
• B)noncurrent asset,which appears in a separate investments category
• C)noncurrent asset,which appears as part of other assets below the plant assets category
• D)current asset
• E)liquid asset

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Definitions:

Differential Action

The mechanism in a vehicle's differential that allows two drive wheels to rotate at different speeds while turning, improving traction and handling.

Outside Wheel

In vehicular turns, the wheel farthest from the turn center, which travels a greater distance and may experience more wear.

Inside Wheel

The wheel on the inside of a turn or curve, which generally travels a shorter distance than the outside wheel, affecting vehicle dynamics.

Drive Pinion

The smaller gear in a gear set that transfers motion to the larger gear or gear rack, frequently used in steering systems and differentials.