BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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INVESTMENT PROPERTY
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PROPERTY PLANT AND EQUIPMENT
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FINANCIAL ASSET HELD FOR TRADING
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CASH SURRENDER VALUE
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Detailed explanation-1: -Current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets.
Detailed explanation-2: -A held-for-trading security is a debt or equity investment that investors purchase with the intent of selling within a short period of time, usually less than one year. Within that time frame, the investor hopes to see appreciation in the value of the security and sell it for a profit.
Detailed explanation-3: -All of the assets in this category are classified as current if they are held for trading purposes or if they are expected to be sold within 12 months from the end of the reporting period.
Detailed explanation-4: -Answer and Explanation: This is the correct option. Companies should convert their Accounts Receivable to cash within one year or one business cycle, so Accounts Receivable is almost always a current asset.
Detailed explanation-5: -financial asset a contractual claim to something of value; modern economies have four main types of financial assets: bank deposits, stocks, bonds, and loans.