Small tools and containers used repeatedly for more than a year are classified on the balance sheet as
A)current assets.
B)fixed assets.
C)deferred charges.
D)investments.

Question

Quizplus · Accepted Answer

Small tools and containers used repeatedly for more than a year are classified as fixed assets on the balance sheet because they are expected to provide benefits to the company over a long period of time and are not intended for resale. Current assets are assets that are expected to be converted into cash within one year, deferred charges are future expenses paid in advance, and investments are assets held for the purpose of generating future income.

Small Tools and Containers Used Repeatedly for More Than a Year