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:

Consolidations

The process of combining two or more entities into one, in terms of financial statements, companies, or assets.

Joining of the Businesses

The joining of the businesses typically refers to the process where two or more companies come together to form a partnership, merger, or acquisition, combining resources for shared goals.

Skateboards

A narrow plank of wood mounted on wheels, used for recreational activity and transportation, typically steered by a rider's balance.

Consolidation

Consolidation refers to the process of combining several smaller entities, debts, or accounts into a single, more comprehensive unit for management efficiency.