BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Cash
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Accounts Receivables
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Prepaid Expenses
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Unearned Income
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Detailed explanation-1: -Answer and Explanation: Answer: d. Sales Revenue. Assets are defined as the resources owned by the company.
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: -Types of Current Assets: Pre-paid expenses. Account receivable. Marketable securities.
Detailed explanation-4: -Land is not a current asset, because land will NOT turn to cash within one year of the balance sheet date, or within the operating cycle if the operating cycle is longer than one year.
Detailed explanation-5: -Current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets. Current assets are important to businesses because they can be used to fund day-to-day business operations and to pay for the ongoing operating expenses.