asked 231k views
3 votes
Which of the following is NOT an example of a current asset?

a) Accounts
b) Accruals
c) Inventory
d) Equipment

asked
User Rbbn
by
8.2k points

1 Answer

2 votes

Final answer:

Equipment is not an example of a current asset.

Step-by-step explanation:

The correct answer is d) Equipment.

Current assets are assets that are expected to be converted into cash or used up within one year. Examples of current assets include cash, accounts receivable, inventory, and prepaid expenses. Equipment, on the other hand, is a long-term or noncurrent asset since it is expected to provide economic benefit beyond one year.

answered
User Bhavesh Vadalia
by
8.3k points
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