Which of the Following Should Be Classified as a Long-Term

question 100

Multiple Choice

Which of the following should be classified as a long-term asset?

• A) Interest Receivable
• B) Accounts Receivable
• C) Notes Receivable, due in 5 years
• D) Cash Equivalents

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Definitions:

Retained Earnings

Retained earnings are the accumulated net profits that a company chooses to keep rather than distribute to shareholders as dividends, often reinvested in the business.

Deficit

The shortfall that occurs when expenses exceed income or revenues.

IFRS

International Financial Reporting Standards, a set of accounting standards for financial reporting that is accepted globally.

Statement of Changes

A financial document that outlines the reasons for changes in equity, including transactions with owners and comprehensive income, over a period.