Question

Office equipment is a _________ asset for a computer manufacturer company and ________ asset for a company that deals in these equipments.

• A. Current, Fixed
• B. Fixed, intangible
• C. Tangible, Intangible
• D. fixed, current

Answer 1

Answer: (D)

fixed, current

Fixed assets are those assets, which are held on a long-term basis in the business. Such assets are not acquired for the purpose of resale, e.g. land, building, plant, etc. and Current assets are those which are either in the form of cash or a can be converted into cash within a year. The examples of such assets are cash in hand/bank, bills receivable, etc. Hence office equipment for a manufacturing company is a fixed asset and current asset for the company that deals in these equipment because it willbe converted into cash soon.