Question

______ is not a current asset.

• A. Pre-paid insurance
• B. Patent
• C. Cash at bank
• D. Advances recoverable

Answer 1

The correct option is B Patent

Assets are classified in two parts i.e fixed assets and current assets. Fixed assets are those assets which gives the benefit to the business in future period also. Like furniture and fixture once installed in the office premises will have a long span of life hence considered as fixed asset. If any technology or product got patented by the business, that will give the benefit to the business for long period, hence its a fixed assets not the current assets.