when classifying assets and liabilities on the balance sheet:\na. current liabilities include accounts…

when classifying assets and liabilities on the balance sheet:\na. current liabilities include accounts receivable.\nb. assets are classified as liquid and non - liquid.\nc. for most businesses the operating cycle is two years.\nd. furniture and fixtures are long - term assets.

when classifying assets and liabilities on the balance sheet:\na. current liabilities include accounts receivable.\nb. assets are classified as liquid and non - liquid.\nc. for most businesses the operating cycle is two years.\nd. furniture and fixtures are long - term assets.

Answer

Brief Explanations:

  • Option A: Accounts receivable is an asset, not a liability.
  • Option B: Assets are classified as current (short - term) and non - current (long - term), not liquid and non - liquid.
  • Option C: For most businesses, the operating cycle is one year or less.
  • Option D: Furniture and fixtures are used for a long time (more than one year) in the business operations, so they are long - term assets.

Answer:

D. furniture and fixtures are long - term assets.