Which of the following should not be classified as a current asset?
A) A one-year installment receivable from the sale of a truck
B) An investment expected to be needed for operations in the next year
C) A one-year prepaid insurance policy
D) A fund to be used to purchase land

Question

Quizplus · Accepted Answer

A fund to be used to purchase land is not considered a current asset because it is not expected to be converted into cash or used up within one year or the operating cycle, whichever is longer. Instead, it would be classified as a long-term asset.

Which of the Following Should Not Be Classified as a Current