Which of the following is NOT typically classified as a current asset?

• A. Cash
• B. Accounts receivable
• C. Inventory
• D. Fixed assets

Answer: (D)

Current assets are resources a business expects to convert into cash or use up within a year (or within the operating cycle). Cash is the classic example. Accounts receivable represent amounts owed by customers that are usually collected soon. Inventory consists of goods held for sale that will be turned into cash as products are sold. Fixed assets, such as buildings and equipment, are long-term resources used in operations and aren’t expected to be liquid within a year; they’re classified as non-current and typically depreciated over their useful lives. So the item that is not typically a current asset is fixed assets.