Home » Accounting: Principles of Financial Accounting » An asset is classified as “current” if: An asset is classified as “current” if: 3. Question 3 An asset is classified as “current” if: 1 / 1 point It is not cash It can be sold in the near future It can be converted into cash in the near future It can be converted into cash within 2 years Other Questions Of This Category Understanding the difference between cash and profit (questions 4 – 5): The ABC Company recognizes credit sales of €100,000. The cost of the goods sold is €60,000. Answer the following two…Fibertech GmbH is a distributor of outdoors technical clothing. The company outsources the production of clothing to external manufacturers in Bangladesh and sells the clothing under its own…For the remaining questions, please consider the following transactions that happened in The Dorchester Company Ltd. in 2015 (amounts in £000): · Credit sales amounted to 5,000 (nothing was…Which of the following statements is correct?The cash flow statement of Le Bernerhof SA showed, for year x2, CFO = €5,500 and CFI = -€10,200. The beginning and ending balances of the cash account in year x2’s balance sheet were €7,900…Downton Smith Ltd. purchased a piece of machinery on Jan 1st 2013 for €400,000. The company estimated a useful life of 10 years and a residual value of zero for this asset. On December 31st…Assume now that Agrokinsey Inc. had estimated a useful life of 15 years instead of 10 years with the same salvage value. Ignore any tax effects of this change in accounting policy. Which of…A three-year bank loan to be repaid at maturity is an example of:Cost of goods soldCompute the net book value of the buildings & equipment sold in x4:Compute cost of goods sold in x2:Reviewing the Income Statement (questions 18 – 20) Vertikal SA imports and distributes climbing gear. Its profit and loss account for the year x5 has the following items (amounts in €000): ·…Which of the following statements is incorrect?Compute the cash flow from operations in x4: (Note: Fibertech treats interest payments as a cash flow from operations.)Which of the following statements is correct?
