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What is an ordinary asset used in trade or business, held for one year or less?

1) Current asset
2) Fixed asset
3) Intangible asset
4) Long-term asset

1 Answer

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Final answer:

An ordinary asset held for one year or less in trade or business is classified as a current asset. This category includes physical items for resale and short-term financial assets.

Step-by-step explanation:

An ordinary asset used in trade or business, held for one year or less, is known as a current asset. Examples of current assets include physical items like inventory, which a business might buy and sell within a year, and short-term financial assets like Treasury bills. A fixed asset is used in operations and likely to be held for more than a year. An intangible asset lacks physical substance and is generally a long-term asset, while long-term assets are things a business holds for more than one year, like buildings or equipment.

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