Which item is typically not classified as a current asset?

• A. Cash
• B. Accounts receivable
• C. Inventory
• D. Land

Answer: (D)

Current assets are resources a business expects to convert to cash or use up within one year or the operating cycle. Items like cash, accounts receivable, and inventory fit this category because they are either already cash or will be turned into cash or consumed in the short term. Land does not fit because it is a long-term asset used over many years and is not typically liquidated in the near term; it’s shown with non-current assets on the balance sheet (often as part of property, plant, and equipment). In some special cases, land held for sale could be classified differently, but under normal circumstances it remains a long-term asset.