Which of the following describes "other long-term assets"?

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Study for the ASU ACC502 Financial Accounting Exam. Practice with comprehensive quizzes and detailed explanations. Prepare with confidence!

"Other long-term assets" typically encompass various assets that are not classified as current assets and are expected to provide economic benefits over a more extended period. The classification includes items like intellectual property rights or intangible assets, which represent non-physical assets that contribute value to a company over time.

Intellectual property rights, such as patents, copyrights, trademarks, and brand equity, are included in this category because they usually have a useful life extending beyond one year and cannot be easily liquidated like current assets. They are expected to generate future cash flows and are reported on the balance sheet as long-term assets.

In contrast, other options represent different categories of assets. Investment securities listed for trading are typically categorized as current assets since they are held for short-term gains. Short-term loans given to suppliers are considered current assets, as they are expected to be repaid within a year. Inventory meant for resale is classified as a current asset as well, as it is expected to be sold within the operating cycle of the business.

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