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 questions:…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 brands.…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 paid by…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 the…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 2015, the…Which of the following statements is correct?A three-year bank loan to be repaid at maturity is an example of: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 and…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): · Debits:…Compute the net book value of the buildings & equipment sold in x4:Cost of goods soldWhich of the following statements is incorrect?For the remaining questions, please consider the following cash transactions that happened in the company Becker GmbH in 2015 (amounts in €000): · Collections from customers: 500 · Purchase of…Which of the following statements is correct?