Current Asset Current assets are the assets which can be easily converted into cash or used within one year. These assets are used in carrying out daily operations of a business. Long Term Asset Long term assets are the assets which are expected to provide economic benefits for more than one year. These assets are used for long term and not for resale withinone year. To Identify: The difference(s) between investments in equity securities classified as current assets versus those classified as long-term (noncurrent) assets.

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Chapter 3, Problem 3.6Q

To determine

Current Asset

Current assets are the assets which can be easily converted into cash or used within one year. These assets are used in carrying out daily operations of a business.

Long Term Asset

Long term assets are the assets which are expected to provide economic benefits for more than one year. These assets are used for long term and not for resale withinone year.

To Identify: The difference(s) between investments in equity securities classified as current assets versus those classified as long-term (noncurrent) assets.

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