Which of the following is not a current asset?
A) Accounts Receivable
B) Prepaid Insurance
C) Merchandise Inventory
D) Equipment

Question

Quizplus · Accepted Answer

Equipment is a long-term asset and not a current asset. Current assets are expected to be converted into cash within one year or one operating cycle, whichever is longer, while long-term assets are expected to provide future economic benefit beyond the next operating cycle. Accounts receivable, prepaid insurance, and merchandise inventory are all examples of current assets.

Which of the Following Is Not a Current Asset