Which of the Following Is Not a Current Asset?

Answer: option (b) land

Explanation: current assets are assets owned by a company that can be easily sold or consumed, which in turn leads to the conversion of liquid funds. Working capital is an important factor for businesses as it provides a place to spend money on a daily basis and pay for ongoing business costs. In other words, the importance of current assets can be explained as assets that are expected to survive within a year are considered current assets.

Types of current assets:

• Cash and cash equivalent
• Inventory
• Ongoing projects
• Prepaid expenses
• Account receivable
• Marketable securities