Which one of the following is not classified as a current asset?

These assets include inventory, accounts receivable, and prepaid expenses, among others. Fixed assets cannot be converted into cash immediately, as they are illiquid assets. The land is also a fixed asset and it will not be considered a current asset despite being used for operations.

What is a non-current asset?

Noncurrent assets are a company’s long-term investments that are not easily converted to cash or are not expected to become cash within an accounting year. Also known as long-term assets, their costs are allocated over the number of years the asset is used and appear on a company’s balance sheet.

Which of the following are non-current items?

Examples of Noncurrent Assets

• Cash surrender value of life insurance.
• Bond sinking fund.
• Certain investments in other corporations.
• Plant assets such as land, buildings, equipment, furnishings, vehicles, leasehold improvements.
• Intangible assets such as goodwill, trademarks, mailing lists.

  What are the examples of current and non-current assets?

  Current assets include items such as accounts receivable and inventory, while noncurrent assets are land and goodwill. Noncurrent liabilities are financial obligations that are not due within a year, such as long-term debt.

  What are the different types of reserves?

  There are different types of reserves used in financial accounting like capital reserves, revenue reserves, statutory reserves, realized reserves, unrealized reserves.

  Which is an indicator of profitability?

  The most commonly used profitability indicators are: net profit margin, EBITDA margin, EBIT margin, return on equity return on invested capital (ROI), return on equity and return on capital employed.

  What do you mean by non-current liabilities?

  Noncurrent liabilities, also known as long-term liabilities, are obligations listed on the balance sheet not due for more than a year. Examples of noncurrent liabilities include long-term loans and lease obligations, bonds payable and deferred revenue.