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:

Consignment-in

Goods held for sale by one party although ownership is retained by another party.

Commissions Earned

Income received by salespersons, brokers, or agents based on sales or transactions completed.

Deferred Gross Profit

The portion of profit resulting from sales made on installment that is not recognized immediately but deferred to future periods.