Which statement is true concerning operating assets?
A)Operating assets have no physical properties.
B)A company's operating assets are important to its short-term liquidity.
C)Operating assets are used over two or more periods to generate revenues.
D)All operating assets are reported on the balance sheet.

Question

Quizplus · Accepted Answer

Operating assets are assets that are used over a period of time to generate revenue for the company. These assets are not held for resale; instead, they are used in the normal course of business operations. Examples of operating assets include plant, property and equipment, inventory, and accounts receivable. They are vital to a company's ongoing business operations and are not reported on the balance sheet as inventory or a short-term asset.

Which Statement Is True Concerning Operating Assets