Identify each of the following as (a) a current asset or (b) property, plant, and equipment:
1. Accounts Receivable is a Current asset
2. Building is a Property, plant, and equipment (long term asset)
3. Cash is a Current asset
4. Office Equipment is a Property, plant, and equipment
5. Prepaid Insurance is a Current asset
6. Supplies is a Current asset
Note
1. Current assets are cash and other assets that are expected to be converted to cash or sold or used up within one year or less, through normal operations.
2. Fixed assets are physical assets of a long-term nature. The fixed assets may also be reported on the balance sheet as property, plant and equipment, or plant assets.
