Which of the Following Is TRUE of Current Assets

question 167

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:

Merchants

Individuals or entities engaged in the business of buying and selling goods for profit, often with expertise in the trade of specific types of goods.

Higher Standard

A level of quality or attainment that is above the ordinary or expected.

Nonmerchants

Individuals or entities that do not engage in buying, selling, or dealing in goods as their regular business activity.

Unconscionable Contract

An agreement that is so unfairly one-sided that it is deemed unenforceable under the law.