Of the Following Items, the One That Should Be Classified

question 35

Multiple Choice

Of the following items, the one that should be classified as a current asset is

• A) Trade installment receivables normally collectible in 18 months
• B) Cash designated for the redemption of callable preferred stock
• C) Cash surrender value of a life insurance policy of which the company is beneficiary
• D) A deposit on machinery ordered, delivery of which will be made within six months

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Definitions:

Diagrams

Visual representations made with symbols, shapes, and lines to demonstrate relationships between different elements or components.

Roadmap

A strategic plan that outlines a sequence of actions or steps needed to achieve a specific goal or manage a project.

Depository

An institution, such as a bank or library, that holds and manages funds or information for its users.

Clay

A natural, earthy material that is malleable when wet and can be used for making pottery, bricks, and sculptures.