Non-current assets are assets kept for more than one year and are categorized into which three groups?

Non-current assets are assets kept for more than one year and are categorized into which three groups?

• A. Tangible; Current; Financial
• B. Tangible; Intangible; Current
• C. Tangible; Intangible; Financial
• D. Tangible; Intangible; Financial

Answer: (D)

Non-current assets are assets kept longer than one year, and they fall into three groups: tangible, intangible, and financial. Tangible assets are physical items used in operations, such as land, buildings, machinery, and equipment. Intangible assets have value but lack physical form, like patents, licenses, trademarks, goodwill, and software. Financial assets include long-term investments and financial instruments such as bonds or long-term receivables. The correct grouping is tangible, intangible, and financial because current assets (which are expected to be realized within one year) belong in a separate category and are not part of non-current assets. Including current would misclassify assets that are not held as long-term resources.

Non-current assets are assets kept longer than one year, and they fall into three groups: tangible, intangible, and financial. Tangible assets are physical items used in operations, such as land, buildings, machinery, and equipment. Intangible assets have value but lack physical form, like patents, licenses, trademarks, goodwill, and software. Financial assets include long-term investments and financial instruments such as bonds or long-term receivables.

The correct grouping is tangible, intangible, and financial because current assets (which are expected to be realized within one year) belong in a separate category and are not part of non-current assets. Including current would misclassify assets that are not held as long-term resources.