01 Jan Long term assets are assets
Question 1
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A firm that has been on lifo for many years may have some inventory costs that go back ten years or more.
Question 2
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The operating cycle is the time between the acquisition of inventory and the realization of cash from selling the inventory.
Question 3
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To qualify as a marketable security, the investment must be readily marketable and it must be the intent of management to convert the investment to cash within the current operating cycle or a year, whichever is longer.
Question 4
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Long term assets are assets that are in the form of cash or that will be realized in cash or that conserve the use of cash within the operating cycle of a business, or one year, whichever is the longer period of time.
Question 5
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Current liabilities are obligations whose liquidation is reasonably expected to require the use of existing current assets or the creation of other current liabilities within a year or an operating cycle, whichever is longer.
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