CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

A long-term asset is different from a prepaid expense primarily because a long-term asset ______
A. has physical substance.
B. is long-term in nature.
C. is used in operations and not for resale.
Explanation: This is the most correct statement. The primary difference between long-term assets and current assets in general is their useful lives.

User Contributed Comments 6

User Comment
murli Between Long term Assets & Current Assets, the main difference the time, than the use.
danlan Question is difference between long-term asset and prepaid expense.
steved333 prepaid expenses are current assets.
endurance thanks steved333 - Very good point to remember
gill15 Another question compared long term assets to investements.

Difference there was that long term assets is used in operations and not for resale.
Inaganti6 @gill15 exactly. my memory lead me to choosing C. ugh.
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