A Short Term Loan to Be Repaid Within One Year

question 10

Multiple Choice

A short term loan to be repaid within one year is classified as a(n) :

• A)Other Current Asset
• B)Other Current Liability
• C)Expense
• D)Owner's Due

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Definitions:

Finished Goods

Products that have completed the manufacturing process and are ready to be sold to customers.

Selling and Admin. Expense

Costs that are not directly tied to the production of goods or services but are necessary for selling products and managing the business.

Variable Expense

Costs that vary directly with the level of production or sales volume, such as raw materials and commission fees.

Finished Goods Inventory

The inventory of finished goods available for sale but still awaiting purchase by consumers.