FA – MAY 2015 – L1 – SA – Q20 – Financial Statements Preparation

Identify the asset that is classified as non-current in financial statements.

Question

Which of the following assets can be classified as non-current in the financial statements of an entity?
A. A tax refund due next year
B. A motor vehicle held for resale
C. A computer acquired for office use
D. Cleaning products used to clean the office
E. Closing inventories

Answer

Answer: C
Explanation:
A computer acquired for office use is a non-current asset as it is expected to be used for more than one year, while the other items listed are either current assets or inventory.

Tags: Financial Statements, Non-current Assets
Level: Level 1

Topic: Financial Statements Preparation, Preparation of Financial Statements
Series: MAY 2015

Uploader: Kwame Aikins