For an investment to be classified as a current asset,a. the investment must be easily convertible to cash.b. the investor must intend to convert the investment to cash within one year or currentoperating cycle, whichever is longer, or use it to pay a current liability.c. both a and b must be met for the investment to be classified as a current asset.d. neither a nor b are relevant to the classification of an investment as a current asset.
For an investment to be classified as a current asset,a. the investment must be easily convertible to cash.b. the investor must intend to convert the investment to cash within one year or currentoperating cycle, whichever is longer, or use it to pay a current liability.c. both a and b must be met for the investment to be classified as a current asset.d. neither a nor b are relevant to the classification of an investment as a current asset.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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For an investment to be classified as a current asset,
a. the investment must be easily convertible to cash.
b. the investor must intend to convert the investment to cash within one year or current
operating cycle, whichever is longer, or use it to pay a current liability.
c. both a and b must be met for the investment to be classified as a current asset.
d. neither a nor b are relevant to the classification of an investment as a current asset.
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