Which of the Following Items Would Normally Be Excluded from the Computation

question 36

Multiple Choice

Which of the following items would normally be excluded from the computation of working capital?

• A) Advances from customers for goods that will be shipped three months after the balance sheet date
• B) The portion of long-term debt that matures six months after the balance sheet date and will be paid from the regular cash account
• C) Prepaid insurance
• D) Cash surrender value of life insurance

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Definitions:

Dead-End

A situation, place, or method that offers no possibility of further progress.

Atlatl

The atlatl is an ancient weapon used for throwing spears or darts, consisting of a shaft with a cup or spur at the end that propelled the spear with greater force.

Burin

A burin is a tool used for engraving or incising hard materials such as stone or metal, typically used in printmaking, jewelry design, and archaeology.

Denisovans

An extinct species or subspecies of archaic humans in the genus Homo, known from DNA evidence and a few fossils found in Siberia.