BUSINESS ADMINISTRATION
PRINCIPLES AND PRACTICE OF MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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All of the following are fixed assets EXCEPT
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land
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inventory
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expensive technology
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all of the above are fixed assets
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Explanation:
Detailed explanation-1: -The correct answer is option D. accounts receivable. Fixed assets are considered non-current assets. They are expected to be used in business operations for more than one accounting period. Generally, these types of assets are subject to annual depreciation.
Detailed explanation-2: -Fixed assets are owned by the business and used to generate revenue, while inventory is a current asset because it is reasonable to expect it can be converted into cash within one business year. From an accounting perspective, fixed assets and inventory stock both represent property that a company owns.
Detailed explanation-3: -However, personal vehicles used to get to work are not considered fixed assets.
There is 1 question to complete.