Which of the following is not classified properly as a current asset at December 31 2022?
A)Accounts receivable
B)A certificate of deposit maturing July 2023
C)A prepaid insurance policy which provides coverage through November 2023
D)A note receivable due in 2024

Question

Quizplus · Accepted Answer

A note receivable due in 2024 is not classified properly as a current asset because it will not be realized or turned into cash within the next accounting period, which in this case is the year ending December 31, 2022. Current assets are expected to be converted into cash within one year or the operating cycle, whichever is longer.

Which of the Following Is Not Classified Properly as a Current