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

Question

Quizplus · Accepted Answer

Building is a non-current asset because it is not expected to be converted to cash or consumed within one year or the operating cycle. It has a useful life of several years and is used for the production of goods and services or for administrative purposes.

B, C, and D are current assets because they are expected to be converted to cash or consumed within one year or the operating cycle. Accounts receivable represent amounts owed to the company for goods or services sold on credit, inventory represents finished goods or goods in production that will be sold in the normal course of business, and supplies represent items used in the day-to-day operations of a company.

An Asset That Is Generally Not Expected to Be Converted