Understanding Assets

What are current assets?

• d. Assets that are depreciated

• b. Assets that can be converted into cash within one year

• a. Assets that are intangible

• c. Assets that are liabilities

Which of the following is an example of a current asset?

• d. Patents

• b. Inventory

• a. Buildings

• c. Machinery

What is liquidity?

• The ease of converting assets into liabilities
  

• b. The ease of converting assets into cash
  

• c. The ease of converting liabilities into assets
  

• d. The ease of converting liabilities into cash

Which financial statement includes current assets?

• c. Cash flow statement

• d. Statement of cash flows

• b. Balance sheet

• a. Income statement

Which of the following is not considered a fixed asset?

• d. Building

• a. Inventory

• c. Bank Account

• b. Land

1. Long-term assets (e.g., patents, trademarks, copyrights) that have no physical form but do have value.

• a. current assets

• c. fixed assets

• Intangible assts

• None of the mentioned

Which category do patents and copyrights fall under

• Current assets
  

• b. Fixed assets
  

• c. Intangible assets
  

• d. Tangible assets

When are current assets typically converted into cash?

• a. Within one year
  

• b. Within three years
  

• c. Within six months
  

• d. Within five years