A Current Asset Is

question 120

Multiple Choice

A current asset is

• A) an asset that will be used in the operating activities of a business.
• B) an asset generated by the operations of a business within the past year.
• C) an asset that is expected to be used or converted to cash within one year or the operating cycle, whichever is longer.
• D) a miscellaneous asset that is small in dollar amount.

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Definitions:

Cryptocurrency

Digital or virtual currency that uses cryptography for security, operating independently of a central bank.

Cryptography

The practice and study of techniques for secure communication in the presence of third parties by converting information into a code to prevent unauthorized access.

Money Order

A money order is a payment order for a pre-specified amount of money, serving as a method of transferring or sending money safely where the use of checks or cash is not possible or advised.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money to a specified person or the bearer, under certain conditions.