Non-current assets are best described as:
A) assets that extend benefits beyond the coming financial year or operating cycle.
B) tangible assets that extend benefits beyond the coming year or operating cycle, whichever is longer.
C) assets that are depreciated for a maximum of 40 years.
D) assets that provide economic benefits over the coming year.

Question

Quizplus · Accepted Answer

Non-current assets are assets that are not expected to be converted into cash within the coming financial year or operating cycle. They are expected to provide economic benefits over a longer period of time, typically beyond one year or one operating cycle. These assets may be either tangible or intangible and can include things like property, plant and equipment, investment properties, intangible assets such as patents or trademarks, and long-term investments. Option A best describes this definition of non-current assets. Option B is incorrect because not all non-current assets are tangible, and the length of the operating cycle can vary. Option C is incorrect because the useful life of non-current assets can be longer or shorter than 40 years, and not all non-current assets are depreciated. Option D is incorrect because non-current assets are expected to provide economic benefits beyond the coming year, not just for the coming year.

Non-Current Assets Are Best Described As