Companies generally report long-term assets in a separate section immediately above current assets on the statement of financial position.

Question

Quizplus · Accepted Answer

This is because long-term assets are not expected to be converted into cash within the next year, whereas current assets are expected to be converted into cash within the next year. Placing long-term assets above current assets helps to provide a clearer picture of a company's overall asset base.

Companies Generally Report Long-Term Assets in a Separate Section Immediately