The assets that will not be converted to cash or used up within the business's operating cycle or one year, whichever is greater, are called:
A)long-term assets.
B)long-term liabilities.
C)current assets.
D)current liabilities.

Question

Quizplus · Accepted Answer

Long-term assets are those that are expected to provide economic benefits to the business for more than one year or the operating cycle, whichever is greater. These assets include property, plant, and equipment, intangible assets, and investments in other companies. Current assets, on the other hand, are expected to be converted to cash or used up within one year or the operating cycle, whichever is greater. Long-term liabilities are obligations that mature beyond one year, while current liabilities are due within one year or the operating cycle, whichever is greater.

The Assets That Will Not Be Converted to Cash or Used