Which of the following is not a criterion for classifying an item as a current asset or liability?

Held primarily for long-term investment

The correct answer is option 2- Held primarily for long-term investment.

Items held primarily for long-term investment would fall under non-current assets.

The criteria for classifying an item as a current asset or liability is:

a) Involvement in the entity's operating cycle: If the item is involved in the entity's operating cycle, it is classified as a current asset or liability.

b) Expected realization/settlement within twelve months: If an asset is expected to be realized (converted into cash or cash equivalents) or a liability is expected to be settled within twelve months after the reporting period, it is considered a current item.

c) Held primarily for trading purposes: If an item is held primarily for trading purposes, such as investments held for short-term profit, it is classified as a current asset.