Which of the Following Would Be Considered a Long-Term Asset

question 120

Multiple Choice

Which of the following would be considered a long-term asset?

• A) Accounts receivable
• B) Land
• C) Inventory
• D) Prepaid insurance

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Definitions:

Market Price

The present cost at which a service or asset is available for purchase or sale.

Put Contract

A financial contract that gives the holder the right, but not the obligation, to sell a certain amount of an underlying asset at a specified price within a specific time period.

Stock Price

The cost of purchasing a share of a company, which fluctuates based on supply and demand, company performance, and market conditions.

American Call Option

A type of options contract that gives the holder the right, but not the obligation, to buy a specified asset at a specified price on or before a specified date.