When Classifying Assets and Liabilities

question 217

Multiple Choice

When classifying assets and liabilities:

• A)assets are classified as liquid and non-liquid.
• B)for most businesses the operating cycle is two years.
• C)furniture and fixtures are long-term assets.
• D)current liabilities include accounts receivable.

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Definitions:

Islets of Langerhans

Groups of pancreatic cells secreting insulin and glucagon, vital for blood sugar regulation.

Beta Cells

Cells located in the pancreas that produce insulin, a hormone that regulates blood glucose levels.

Insulin

A hormone produced by the pancreas that regulates blood sugar levels by facilitating the uptake of glucose into cells.

Thyroid Gland

An endocrine gland in the neck that produces hormones regulating growth and development through the rate of metabolism.