Which of the Following Items Is Usually Classified as a Noncurrent

question 43

Multiple Choice

Which of the following items is usually classified as a noncurrent asset?

• A) Prepaid rent
• B) Plant expansion fund
• C) Supplies
• D) Goods that are in the process of being completed for another company

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Definitions:

Contra Account

An account used in the general ledger to reduce the value of a related account when the two are netted together.

Normal Balance

The side (debit or credit) of an account that is expected to have a positive balance.

Subtraction

A basic mathematical operation representing the difference between numbers or quantities.

Straight-Line Depreciation

Straight-line depreciation is a method of allocating the cost of a tangible asset over its useful life in equal installments.