which of the following is not considered a current asset?
> cash
> business equipment
> notes receivable
> office supplies
http://www.investopedia.com/terms/c/currentassets.asp
To determine which of the given options is not considered a current asset, we need to understand what current assets are.
Current assets are assets that are expected to be converted into cash or used up within the normal operating cycle of a business, usually within one year. They are listed on a company's balance sheet and are important for the day-to-day operations of the business.
Now let's consider the options given:
1. Cash: Cash is considered a current asset because it is readily available and can be used for immediate transactions.
2. Business equipment: This could be considered a current asset if it is expected to be used up or sold within one year. However, most business equipment is classified as a long-term asset because it typically has a longer useful life.
3. Notes receivable: Notes receivable are considered current assets. They represent the amounts owed to a company by customers or other parties and are expected to be collected within one year.
4. Office supplies: Office supplies are typically considered current assets because they are expected to be used up within one year.
Based on this analysis, the option that is not considered a current asset is "business equipment."