Which of the following would not be considered a current asset?
Group of answer choices
long-term investments
accounts receivable
marketable securities
cash
To determine which of the options would not be considered a current asset, let's first understand what a current asset is. Current assets are resources that are expected to be converted into cash or used up within one year or the operating cycle of a business, whichever is longer.
Now, let's evaluate each option:
1. Long-term investments: This option would not be considered a current asset because long-term investments are assets that are held for a period longer than one year, such as stocks or bonds.
2. Accounts receivable: This option would be considered a current asset. Accounts receivable are amounts owed to a company by its customers or clients, and they are typically expected to be collected within one year or the operating cycle.
3. Marketable securities: This option would be considered a current asset. Marketable securities are highly liquid financial instruments, such as stocks and bonds, that can be easily bought or sold within one year or the operating cycle.
4. Cash: This option would be considered a current asset. Cash refers to the physical currency, coins, and any balances in bank accounts that a company possesses and can use to settle its obligations.
Based on the explanation above, the option that would not be considered a current asset is "long-term investments."