alleryA delivery van that will serve the business for eight years is classified as a:
ANoncurrent income
BNoncurrent refund
CNoncurrent asset
DNoncurrent charge
Answer & Solution
Correct answer: C. Noncurrent asset
1. The dividing line is whether the item is used up within a year.
2. Eight years of service sits well beyond that line.
3. The van is a noncurrent asset.
_Source: OpenStax Principles of Financial Accounting, Chapter 2, Introduction to Financial Statements._
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