Consider the following items: • Land • Accounts Receivable • Notes Payable (due in three years) • Accounts Payable • Retained Earnings • Prepaid Rent • Deferred Revenue • Buildings • Notes Payable (due in six months) • Equipment How many of the items listed above are generally long-term assets?

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23 January, 17:51

Consider the following items: • Land • Accounts Receivable • Notes Payable (due in three years) • Accounts Payable • Retained Earnings • Prepaid Rent • Deferred Revenue • Buildings • Notes Payable (due in six months) • Equipment How many of the items listed above are generally long-term assets?

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Answers (1)

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Ernest Lee · Answer 1

Land, Building and equipment

Explanation:

As we know that

Total assets include current assets, fixed assets and intangible assets Current assets involve cash, stock, account receivables, etc. Fixed assets comprise plant & machinery, property, equipment, furniture & fittings, etc.

So according to the given situation, the land, building and the equipment is considered generally as a long term asset