Current assets include all of the following EXCEPT
A) buildings.
B) cash.
C) savings.
D) inventory.
E) accounts receivable.

Question

Quizplus · Accepted Answer

Buildings are considered long-term assets, not current assets. Current assets are those expected to be converted to cash or used up within one year or one operating cycle, whichever is longer. Cash, savings, inventory, and accounts receivable are all examples of current assets because they are expected to be converted to cash or used in the normal course of business within a short period of time. Buildings, on the other hand, are used over many years and are classified as property, plant, and equipment on the balance sheet.

Current Assets Include All of the Following EXCEPT