when classifying assets and liabilities on the balance sheet: a. for most businesses the operating cycle is…

when classifying assets and liabilities on the balance sheet: a. for most businesses the operating cycle is two years. b. furniture and fixtures are long - term assets. c. current liabilities include accounts receivable. d. assets are classified as liquid and non - liquid.

when classifying assets and liabilities on the balance sheet: a. for most businesses the operating cycle is two years. b. furniture and fixtures are long - term assets. c. current liabilities include accounts receivable. d. assets are classified as liquid and non - liquid.

Answer

Brief Explanations:

  • Option A: The operating cycle for most businesses is usually one year or less, not two years.
  • Option B: Furniture and fixtures are long - term assets as they have a useful life of more than one year and are used in the operations of the business.
  • Option C: Accounts receivable are assets, not current liabilities.
  • Option D: Assets are classified as current and non - current, not liquid and non - liquid in the context of balance sheet classification.

Answer:

B. furniture and fixtures are long - term assets.