Which of the following should be classified as a long-term asset?
A) Interest Receivable
B) Accounts Receivable
C) Notes Receivable, due in 5 years
D) Cash Equivalents

Question

Quizplus · Accepted Answer

Long-term assets are those that are expected to provide economic benefits to a company for more than one year. Notes Receivable that are due in 5 years are considered long-term assets as they are expected to generate benefits for the company over a longer period of time. Interest Receivable and Accounts Receivable are typically considered current assets as they are expected to be collected within a year. Cash Equivalents can be either short-term or long-term depending on the maturity date of the investment.

Which of the Following Should Be Classified as a Long-Term