A company that produces drugs is preparing a statement of financial position.Which of the following would be most likely to be considered a long-term asset on this statement of financial position?
A)commercial paper held by the company
B)the inventory of chemicals used to produce the drugs made by the company
C)a patent for a drug held by the company
D)the cash reserves of the company
E)money owed to the firm by customers who have purchased goods on credit

Question

Quizplus · Accepted Answer

A patent is an intangible asset that represents a long-term investment for the company. Options A, D, and E are all current assets, while option B is a short-term asset.

A Company That Produces Drugs Is Preparing a Statement of Financial