Assets other than cash are expected to produce cash over time, but the amount of cash they eventually produce could be higher or lower than the values at which these assets are carried on the books.

Question

Quizplus · Accepted Answer

This statement is true. Examples of assets that are expected to produce cash over time include inventory, property, plant, and equipment, and investments. The future cash flows generated by these assets may be more or less than the carrying values recorded on the company's financial statements, which is why companies must regularly review and adjust the carrying values of these assets.

Assets Other Than Cash Are Expected to Produce Cash Over