All Current Assets Are Either Cash or Assets That Will

question 159

True/False

All current assets are either cash or assets that will be converted into cash or consumed within 12 months or the operating cycle, whichever is longer.

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Definitions:

Resale Value

The likely selling price of a good or asset if sold at a future date, considering depreciation or appreciation.

Office Furniture

Items designed for use in a work or office setting, including desks, chairs, and file cabinets.

Straight-Line Method

A depreciation method that allocates an equal amount of an asset's cost to each year of its useful life.

Resale Value

The estimated market value of an asset if sold again; often used in reference to vehicles, electronics, and real estate.