Which of the Following Should NOT Be Considered Current Assets

question 74

Multiple Choice

Which of the following should NOT be considered current assets in the statement of financial position?

• A) instalment notes receivable due over eighteen months, in accordance with normal trade practice
• B) prepaid taxes, which cover assessments for the current year
• C) equity or debt securities purchased with cash available for current operations
• D) franchises and copyrights

---

Definitions:

Selling And Administrative Expenses

Expenses related to the selling of products or services and the general administration of a business, not including manufacturing costs.

Planning Budget

A budget designed for planning and strategic purposes, outlining expected revenues, expenses, and other financial activities.

Activity Level

A measure of the volume or quantity of production or operations within a specific period, influencing variable costs.

Activity Variance

The difference between the budgeted amount of activity and the actual amount of activity, often analyzed in budgeting to control costs.