An investment in marketable securities to be used to replace equipment of the company in two years should be classified as an):
A)noncurrent asset.
B)current asset.
C)fixed asset.
D)intangible asset.

Question

Quizplus · Accepted Answer

Marketable securities intended to be used for the replacement of equipment in two years are classified as noncurrent assets because they are not expected to be converted into cash within one year or the operating cycle, whichever is longer.

An Investment in Marketable Securities to Be Used to Replace