BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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current asset
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non-current assets
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current liabilities
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non-current liabilities
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Detailed explanation-1: -In accounting terms, inventory is considered an asset. On the balance sheet, it is recorded as a current asset because businesses typically use, sell or replenish it in less than 12 months.
Detailed explanation-2: -Some examples of current assets include cash, cash equivalents, short-term investments, accounts receivable, inventory, supplies, and prepaid expenses.
Detailed explanation-3: -Current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets.
Detailed explanation-4: -Some examples of long-term assets include: Fixed assets like property, plant, and equipment, which can include land, machinery, buildings, fixtures, and vehicles. Long-term investments such as stocks and bonds or real estate, or investments made in other companies.