Dan wants to make sure he puts his company's assets in the correct categories.Which of the following is an example of a current asset?
A)Land
B)Inventories
C)Equipment
D)Buildings

Question

Quizplus · Accepted Answer

Inventories are considered current assets because they are expected to be turned into cash within a year or the operating cycle of the business. Land, equipment, and buildings are considered fixed assets or long-term assets because they are not likely to be converted into cash in the near future.

Dan Wants to Make Sure He Puts His Company's Assets