Which of these assets, which could be listed on a statement of financial position, is likely not to translate into future economic benefits?
A)Large inventories of spare parts.
B)Accounts receivable that have been outstanding for several months.
C)Inventory that has been on the shelves for over a year.
D)All of the above.

Question

Quizplus · Accepted Answer

All the options listed (A, B, and C) represent assets that might not translate into future economic benefits. Large inventories of spare parts (A) could become obsolete, accounts receivable outstanding for several months (B) might not be collectible, and inventory on the shelves for over a year (C) may not be saleable or could be obsolete, indicating potential impairment of these assets.

Which of These Assets, Which Could Be Listed on a Statement