An asset that is not expected to be converted to cash or consumed within one year or the operating cycle is:

Question

Quizplus · Accepted Answer

Goodwill is an asset that represents the excess of the purchase price of an acquired company over the fair value of its identifiable assets and liabilities. It is not expected to be converted to cash or consumed within one year or the operating cycle. Therefore, it is an example of a non-current asset.

B) Accounts receivable, C) Inventory, and D) Supplies will all be consumed or converted to cash within one year or the operating cycle, so they are current assets.

An Asset That Is Not Expected to Be Converted to Cash