If the Operating Cycle of a Business Is Fifteen Months

Multiple Choice

If the operating cycle of a business is fifteen months, which of the following statement is true?

A) Cash set aside for a purchase of equipment will be shown as a current asset.
B) A note receivable that is due one year and two months from the balance sheet date will be shown as a current asset.
C) Balance sheets should be prepared more often than income statements.
D) A note, that is payable by the business two years from the balance sheet date, will be shown as a current liability.