If Assets Are Expected to Be Realized in Cash,sold,or Consumed

question 149

Multiple Choice

If assets are expected to be realized in cash,sold,or consumed within the normal operating cycle of a business or within one year (if the operating cycle is shorter than one year) ,how are they reported on a classified balance sheet?

• A)Property,Plant,and Equipment
• B)Current Assets
• C)Intangible Assets
• D)Current Liabilities

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Definitions:

Legally Liable

Being subject to legal responsibility or obligation, particularly in the context of lawsuits or compensations.

Sole Proprietorship

A business ownership structure where a single individual owns, operates, and is responsible for all aspects of the business.

Personally Liable

The legal responsibility of an individual to compensate for debt or obligation from personal assets, not through corporate or shared assets.

Sole Proprietorship

A business structure where a single individual owns and operates the business, personally responsible for all its debts and liabilities.