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 that might prevent its deposit or use it to pay creditors classified as current.
not used to pay creditors.
free from any restrictions that might prevent its deposit or use it to pay creditors classified as non-current.
23. (TCO 6) If a firm pledges its receivables and its inventory, then the best indicator of its short-term liquidity may be indicated by (Points : 5)
days' sales in receivables.
24. (TCO 6) Which of the following is not classified as a current asset? (Points : 5)