Which of the following is a long-term asset?

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Prepare for the WGU ACCT2350 Intro to Business Accounting Exam. Practice with multiple choice questions and detailed solutions to sharpen your accounting skills. Master your exam with confidence!

Multiple Choice

Which of the following is a long-term asset?

Explanation:
Long-term assets are resources a company expects to keep and use for more than one year, shown on the balance sheet as noncurrent assets. Land fits this category because it is held for ongoing operations over many years and isn’t depreciated like most other long-lived assets. Cash, inventory, and accounts receivable are typically current assets since they are expected to be used or converted to cash within one year or the normal operating cycle. So land stands out as the long-term asset.

Long-term assets are resources a company expects to keep and use for more than one year, shown on the balance sheet as noncurrent assets. Land fits this category because it is held for ongoing operations over many years and isn’t depreciated like most other long-lived assets. Cash, inventory, and accounts receivable are typically current assets since they are expected to be used or converted to cash within one year or the normal operating cycle. So land stands out as the long-term asset.

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