Which of the Following Describes the Term "Current Assets

question 4

Multiple Choice

Which of the following describes the term "current assets"?

• A) the amount of total assets earned by a business since it began operations plus all other resources
• B) the amount of claim that the owners have in the business in the current year
• C) assets expected to be converted into cash within one year or one operating cycle, whichever is longer
• D) the cumulative profits earned by a business less any dividends distributed in the current period

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Definitions:

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.

MIRR

Modified Internal Rate of Return, a financial metric that addresses some of the limitations of the traditional internal rate of return by taking into account different financing and reinvestment rates.

Mutually Exclusive

Conditions or options that cannot occur or be chosen at the same time, requiring a choice to be made between them.

Internal Rate

Often refers to the internal rate of return (IRR), a metric used in capital budgeting to estimate the profitability of investments.