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.

---

Definitions:

State Law

Laws that are established and enforced by the individual U.S. states.

Contract Law

Refers to the body of law that regulates the formation, enforcement, and interpretation of agreements between parties.

Criminal Law

The body of law that relates to crimes and prescribes the punishments for criminal acts.

Legal Responsibility

The obligation to adhere to both the laws of the land and the ethical standards set by society.