Each question is different. Multiple choice

PARTII (continued) 4) The basis for classifying assets as current or noncurrent is the period of time normally required by the accounting entity to convert cash invested in A) inventory back to cash, or 12 months, whichever is shorter. B) receivables back into cash, or 12 months, whichever is longer C) tangible fixed assets back into cash, or 12 months, whichever is longer. D) inventory back into cash, or 12 months, whichever is longer 5) The premium on a three-year insurance policy expiring on December 31 20x9, was paid in total on January 1, 20x7. The original payment was initially debited recorded on December 31, 20x7. The adjusted balance in the prepaid asset account on December 31, 20x7 should be to a prepaid asset account. The appropriate journal entry has been The same as it would have been if the original payment had be debited initially to an expense account. The same as the original payment. Higher than if the original payment had been debited initially t expense account. A) Zero B) C) D) A) information about the investors in the business entity. B) information about the market values of the assets held by t 6) One objective of financial reporting is to provide C) information that is useful in assessing cash flow prospects D) information about the founders of the company. enterprise