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

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

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

Answer

Brief Explanations:

  • Option A: Accounts receivable is an asset, not a liability. So this option is incorrect.
  • Option B: Assets are classified as current (short - term) and non - current (long - term), not liquid and non - liquid. So this option is incorrect.
  • Option C: Furniture and fixtures are used in the business for more than one year. They have a long - term use and are long - term (non - current) assets. This option is correct.
  • Option D: For most businesses, the operating cycle is one year (not two years). So this option is incorrect.

Answer:

C. furniture and fixtures are long - term assets.