Question

question 2

non-current assets are those that are used in businesses for periods longer than 12 months.

true
false

Explanation:

🆕 New Concept Discovered: Asset Classification
Distinguishing short-term and long-term resources.

Step 1: Define Non-Current Assets

Non-current assets (also known as long-term assets) are resources owned by a business that are expected to generate economic value over an extended period. Unlike current assets, which are expected to be converted into cash or consumed within one year (12 months), non-current assets are held for long-term use.

Step 2: Evaluate the Statement

The statement states: "Non-Current Assets are those that are used in businesses for periods longer than 12 months."

Since the standard threshold distinguishing current and non-current items in accounting is 12 months (or one operating cycle), assets used for a period longer than 12 months are indeed classified as non-current assets. Therefore, the statement is true.

Answer:

True