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.

---

Definitions:

Deceptive Advertisement

Marketing communication that misleads consumers about the characteristics, benefits, or quality of a product or service.

Consumer Law

A branch of law that deals with the rights of consumers and the regulation of trade practices to protect those rights.

Truth in Lending Act

A federal law designed to promote informed use of consumer credit by requiring disclosures about its terms and cost.

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including interest rates, repayment schedule, and other critical terms of the credit agreement.