Which of the following assets would not be classified as a current asset?
A) Accounts receivable
B) Prepaid rent
C) Supplies
D) Equipment
E) None of the above

Question

Quizplus · Accepted Answer

Equipment is not classified as a current asset because it is a long-term asset, meaning it is expected to provide economic benefits for a period longer than one year. Current assets, on the other hand, are assets expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer. Accounts receivable, prepaid rent, and supplies are all examples of current assets.

Which of the Following Assets Would Not Be Classified as a Current