When Classifying Assets and Liabilities on the Balance Sheet

question 100

Multiple Choice

When classifying assets and liabilities on the balance sheet:

• 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:

Adipose Tissue

A type of body tissue containing stored fat, serving as an energy reserve, padding and insulation for the body.

Greater Omentum

The greater omentum is a large apron-like fold of visceral peritoneum that hangs down from the stomach, playing a role in fat deposition and immune response.

Visceral Peritoneum

Layer of peritoneum covering the abdominal organs.

Enteric Nervous System

A subdivision of the autonomic nervous system that directly controls the gastrointestinal system.