All of the Following Are Classified as Assets Except

question 97

Multiple Choice

All of the following are classified as assets except:

• A)Accounts Receivable.
• B)Supplies.
• C)Equipment.
• D)Accounts Payable.
• E)Land.

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Definitions:

Cash Ratio

A liquidity ratio that measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.

Current Liabilities

Current liabilities are a company's debts or obligations that are due to be paid to creditors within one year.

Long-term Debt

Debt obligations that are due for repayment in more than one year, often used by businesses to finance operations or acquisitions.