Which of the following is not a current asset?
A) Prepaid property taxes that relate to the next operating period
B) The cash surrender value of a life insurance policy carried by a corporation on its president
C) Marketable securities purchased as a temporary investment of cash
D) Installment notes receivable due over 15 months in accordance with normal trade practices

Question

Quizplus · Accepted Answer

The cash surrender value of a life insurance policy carried by a corporation on its president is not considered a current asset because it is not expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer. Current assets typically include items like cash, marketable securities, accounts receivable, and inventory, which are expected to be liquidated or used up in the near term.

Which of the Following Is Not a Current Asset