ACG Chapter 4 Question and answers
verified to pass
Classified Balance Sheet - correct answer ✔A balance sheet that places
each asset and each liability into a specific category
Liquidity - correct answer ✔A measure of how quickly an item can be
converted to cash
Current Asset - correct answer ✔An asset that is expected to be converted
to cash, sold, or used up during the next 12 months, or within the business's
normal operating cycle if the cycle is longer than a year
Operating Cycle - correct answer ✔The time span during which cash is paid
for goods and services, which are then sold to customers from whom the
business collects cash
Long-Term Asset - correct answer ✔An asset that will not be converted to
cash or used up within the business's operating cycle or one year, whichever
is greater
Long-Term Investment - correct answer ✔A long-term asset category that
includes investments in bonds or stocks in which the company intends to hold
the investment for longer than one year
Plant Asset - correct answer ✔Long-lived, tangible asset, such as land,
buildings, and equipment, used in the operation of a business
Intangible Asset - correct answer ✔An asset with no physical form that is
valuable because of the special rights it carries
verified to pass
Classified Balance Sheet - correct answer ✔A balance sheet that places
each asset and each liability into a specific category
Liquidity - correct answer ✔A measure of how quickly an item can be
converted to cash
Current Asset - correct answer ✔An asset that is expected to be converted
to cash, sold, or used up during the next 12 months, or within the business's
normal operating cycle if the cycle is longer than a year
Operating Cycle - correct answer ✔The time span during which cash is paid
for goods and services, which are then sold to customers from whom the
business collects cash
Long-Term Asset - correct answer ✔An asset that will not be converted to
cash or used up within the business's operating cycle or one year, whichever
is greater
Long-Term Investment - correct answer ✔A long-term asset category that
includes investments in bonds or stocks in which the company intends to hold
the investment for longer than one year
Plant Asset - correct answer ✔Long-lived, tangible asset, such as land,
buildings, and equipment, used in the operation of a business
Intangible Asset - correct answer ✔An asset with no physical form that is
valuable because of the special rights it carries
