Assets are classified as current or long term based on:
A) age of the asset.
B) whether the asset is a physical good or not.
C) the liquidity of the asset.
D) whether the asset is based on fair market value or not.

Question

Quizplus · Accepted Answer

Assets are classified as current or long term based on their liquidity, meaning how quickly they can be converted into cash within a year (current) or more than a year (long term).

Assets Are Classified as Current or Long Term Based On