Question

Which of the following characteristics apply to long-term assets?

i – Worth large sums of money

ii – Constitute larger items on the balance sheet

iii – Last a long time

iv – Include inventory

Select one:

a. i and iv only

b. All of i, ii, iii, and iv

c. i, ii, and iii only

d. ii, iii and iv only

Answer 1

Answer

• Correct Answer = Option ‘C’ [i], [ii], and [iii] only are Correct.
• Long Term assets are those assets that:
  >are usually purchased by paying large sum of money,
  >exist on balance sheet at big value, compared to current assets
  >last for a longer period of time.
• However, Inventory is not included I Long term Assets.