Which of the Following Statements Is True

question 158

Multiple Choice

Which of the following statements is true?

• A)Accounts receivable are more liquid than cash.
• B)Notes receivable are always classified as current assets.
• C)Notes receivable usually have longer collection terms than accounts receivable.
• D)Accounts receivable are liabilities.

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Definitions:

Publicly Held Corporations

Companies that sell their shares publicly, allowing the public to invest and own a portion of the company.

Professional Managers

Individuals or entities specialized in overseeing and making managerial decisions for businesses or organizations to ensure their effective and efficient operation.

Close Corporations

Privately held businesses with a small number of shareholders and no public market for their shares, often operated by the shareholders themselves.

General Incorporation Statutes

Laws that provide the procedures and regulations for forming a corporation.