Practicing Success
Which of the following is not a criterion for classifying an item as a current asset or liability? |
Held primarily for trading purposes Held primarily for long-term investment Expected realization/settlement within twelve months Involvement in the entity's operating cycle |
Held primarily for long-term investment |
The criteria for classifying an item as a current asset or liability is: Items held primarily for long-term investment would fall under non-current assets, not current assets. |