Question 22.

22.(TCOs 5 and 6) For cash to be classified as a current asset, it must be(Points : 5)

deposited into a bank account.

free from any restrictions thatmight prevent its deposit or use it to pay creditors classified as current.

not used to pay creditors.

free from any restrictions thatmight prevent its deposit or use it to pay creditors classified as non-current.

Question 23.

23.(TCO 6) If a firmpledges its receivables and its inventory, then the best indicator of its short-term liquidity may be indicated by(Points : 5)

working capital.

acid-test.

cash ratio.

days' sales in receivables.

Question 24.

24.(TCO 6) Which of the followingis notclassified as a current asset?(Points : 5)

Marketable securities

Inventories

Receivables

Cash

Investments