Which is not a current asset among the following items? a. cash and cash equivalentsb. inventory under productionc. prepaid insurance to be used up this yeard. a company’s office building bought this year

Answers

  • Réponse publiée par: saintjohn

    Subject Economics

    The correct answer among the four given choices is letter d. A company’s office building bought this year is not a current asset. It is a non-current asset because it is considered a long-term assets or long-term investments that have a longer useful life that is usually more than 1 year and it is not easily converted to cash.

    Current Versus Non-current AssetsASSETS

    In accounting, assets are any resources with value owned by the business, company, entity or person. Assets have two categories, these are:

    Current AssetsNon-current Assets1. Current Assets

    -these are assets that can be readily converted to cash in a normal operating cycle of a business. The normal operating cycle of a business is within 1 year.

    Some Examples of Current Assets

    Cash and cash equivalentsAccounts ExpensesMarketable Securities2. Non-current Assets

    -these are business resources that are considered long-term assets or long-term investments that have a longer useful life that is usually more than 1 year. Not easily convertible to cash.

    Some Examples of Non-Current Assets

    LandProperty, Plant and EquipmentTrademarksLong-term InvestmentsGoodwill

    All fixed assets and intangible assets fall under the category of non-current assets.

    Further topics about assets and liabilities

    What is the opposite of assets

    Code 11.11.3.8.

  • Réponse publiée par: abyzwlye
    D. A company's office building bought this year

    Explanation:

    Among the given assets, a company's office building bought this year is the one which is classifies as a non-current asset. Even though it is bought this year, its value can last for more than a year or operating cycle of the business.

    To further understand assets, just continue reading.

    Assets

    In accounting, assets are the resources that a company owns and has monetary value.

    Two types of asset:Current asset - assets that are usable or convertible to cash within a year or operating cycle of a business.Non-current asset - assets that can't be used or converted to cash within a year or operating cycle of a business.Examples of current asset:Cash and cash -on- of non-current asset:LandEquipment/MachinesIntangible assets

    #answerForTrees

  • Réponse publiée par: 09389706948
    No

    Explanation:

    Inventories is NOT categorized as a liability because it is a resource/s that is owned businesses, not owes. Inventories are the raw materials, goods-in-process, or finished products that is owned by business and not something that they need to pay.

    To further understand why Inventory is an asset, just continue reading.

    Assets

    In accounting, assets are the resources that a company owns and has monetary value.

    Two types of asset:Current asset - assets that are usable or convertible to cash within a year or operating cycle of a business.Non-current asset - assets that can't be used or converted to cash within a year or operating cycle of a business.Examples of current asset:Cash and cash -on- of non-current asset:LandEquipment/MachinesIntangible assetsLiabilities

    In accounting, liabilities are the resources that a company owes to another business or people.

    Two types of liabilities:Current liabilities - accountabilities that must be paid or dealt within a year or operating cycle of a business.Non-current liabilities - accountabilities that must be paid but not within a year or operating cycle of a business.Examples of current liabilities:Accounts PayableNotes PayableUnearned RevenuesExamples of non-current liabilities:Mortgage PayableBonds Payable

    #answerForTrees

  • Réponse publiée par: elaineeee

    Of course the change should start with me. I should start making advocacies and doing small yet helpful things for the environment and the community so I could convince my community to do the same.

    #answerForTrees

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Which is not a current asset among the following items? a. cash and cash equivalentsb. inventory und...