Question

Which of the following is not a current asset?

(a) Debtors
(b) building
(c) cash
(d) stock​

Answer 1

Answer:

B

Explanation:

building is a fixed asset

Answer 2

Option (b). The building is not a current asset.

Explanation:

• Assets can be of two types: 1) current assets and 2) non-current assets.
• 1) Current assets: are those assets whose benefit will be realized within one year or in the same accounting period. For example debtors, cash, stock, etc.
• 2) Non-current assets: are those assets whose benefits will be realized for various future accounting periods and will not be sold off within one year. For example plant, machinery, building, land, etc.
• A building is not a current asset. It is a non-current asset because its benefits will be realized over many future accounting periods.