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zloy xaker [14]
3 years ago
12

​which one of these is a correct definition? ​current liabilities are debts that must be repaid in 18 months or less. ​current a

ssets are assets with short lives, such as inventory. ​long-term debt is defined as a residual claim on a firm's assets. ​tangible assets are fixed assets such as patents. ​net working capital equals current assets plus current liabilities.
Business
1 answer:
8090 [49]3 years ago
8 0

Current liabilities are debts that must be repaid within a year.

Current assets are assets with short lives, but inventory is not considered a current asset at times, for example in the quick ratio, inventory is disregarded.

Long-term debts are those that can be paid after a year or more, and not whatever "residual claim" the question speaks of.

Tangible assets are assets which can be felt and have a physical form, but are not necessarily fixed assets.

Net working capital is current assets minus current liabilities.

'The only definiiton that seems correct is the current asset one, although they word it inappropriately.

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