Which of the Following Items Is Not Classified as a Current

question 41

Multiple Choice

Which of the following items is not classified as a current asset?

• A)Accounts Receivable.
• B)Merchandise Inventory.
• C)Office Equipment.
• D)Prepaid Rent.

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Definitions:

Net Operating Income

The profit generated from a company’s everyday business operations, calculated by subtracting operating expenses from revenue.

Units Produced

The total number of units created by a production process over a specific period of time.

Break Even

The point at which total revenues equal total costs, resulting in neither profit nor loss.

Common Fixed Expenses

Common fixed expenses are costs that remain constant for a given period regardless of the level of production or sales, and are shared among multiple product lines or departments within a company.