To Be Classified as a Current Asset,an Investment Must Meet

question 52

Multiple Choice

To be classified as a current asset,an investment must meet which of the following criteria:

• A)the investment must be liquid.
• B)the investor must intend to either convert the investment to cash within one year or current operating cycle,whichever is longer,or use it to pay a current liability.
• C)the investment must be easily convertible to cash.
• D)all of the above.

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Definitions:

Policies

Principles or rules that guide decisions and achieve rational outcomes.

Procedures

Established methods or sequences of actions for performing tasks or achieving specific objectives, often documented for consistency and efficiency.

Downward Communication

Messages sent from the upper levels of the organizational hierarchy to the lower levels.

Organizational Hierarchy

A structured arrangement in an organization that ranks positions in a linear or vertical manner, from lowest to highest, based on authority and responsibility.