Question 18 (2 points) Items are listed as current assets on the balance sheet if they will be sold or used up within one year or the liquidity cycle if longer O the liquidity cycle if shorter the operating cycle if longer the operating cycle if shorter Question 19 (2 points) A company produces a wine that is sold to fine dining establishments. The production process involves aging the product in a cellar for three years before the first bottle is sold. During the aging process the company takes out loans of $200,000. The value of the inventory in the cellar is $300,000. How would the inventory and associated loans be presented on a classified balance sheet? $300,000 of inventory would be a current asset; $200,000 of loans would be current liability. A net $100,000 would be presented as a current asset. $300,000 of inventory would be a current asset; $200,000 of loans would be a long term liability $200,000 of inventory would be a current asset; $100,000 of invento would be noncurrent; $200,000 would be a noncurrent liability. Question 20 (2 points) The FASB Conceptual Framework gives several characteristics of an Asset. Which of the following is specifically included as part of the FASB's definition of an asset? Something owned Something which is tangible Something that has probable future benefits Something arising from current transactions or events Question 21 (2 points) A 20 year bond payable was recorded on the books 19 years ago. Now the company is 11 months away from have to repay this Bond. They have planned ahead and will have enough resources in their Bonk Sinking Fund to repay this obligation when it comes due. True or False? On this year's balance sheet (11 months from the due date of the bond), this bond should be listed as a LONG TERM BOND. True False