Which of the Following Should Not Be Considered as a Current

question 59

Multiple Choice

Which of the following should not be considered as a current asset in the balance sheet?

• A) The cash surrender value of a life insurance policy carried by a corporation, the beneficiary, on its president.
• B) Marketable securities purchased with cash as a short-term investment.
• C) Instalment notes receivable due within 12 months in accordance with normal trade practice.
• D) Prepaid taxes which cover assessments of the following operating cycle of the business.

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Definitions:

Phonograph

An early sound-reproducing machine that played records by tracing a stylus over a rotating cylinder or disc, invented by Thomas Edison in 1877.

Jazz

A music genre that originated in the African-American communities of New Orleans in the late 19th and early 20th centuries, characterized by syncopated rhythms and improvisation.

Technological Advance

The progress and innovation in technology, leading to the development of new devices, systems, or methods that improve efficiency, capability, and performance.

Appeal

A process by which a case is brought before a higher court for review of the decision of a lower court, aiming to overturn or modify the lower court's judgment.