Which of the following would not be classified as a current asset on a classified balance sheet?
A) Investment securities (trading)
B) Short-term investments
C) Prepaid expenses
D) Intangible assets

Question

Quizplus · Accepted Answer

Intangible assets are classified as long-term assets on the balance sheet, not current assets, because they are not expected to be converted to cash or used up within one year or the operating cycle of the business. Current assets are assets that are expected to be converted to cash or used up within one year or the operating cycle, whichever is longer. Examples of current assets include cash, accounts receivable, inventory, prepaid expenses, and short-term investments. Investment securities (trading) may be classified as a current asset if they are expected to be sold within one year or the operating cycle, and prepaid expenses and short-term investments are obviously current assets.

Which of the Following Would Not Be Classified as a Current