Question

Long-lived assets used in the operations of the business refer to property, plant, and equipment, and what?

1) Inventory
2) Intangible assets
3) Current liabilities
4) Accounts receivable

Answer 1

Long-lived assets used in business operations include property, plant, equipment, and intangible assets. These are distinct from current assets like inventory and other items such as current liabilities and accounts receivable.

Step-by-step explanation:

Long-lived assets used in the operations of the business refer to property, plant, and equipment, and intangible assets. Intangible assets, unlike inventory, which is considered a short-term asset because it is turned over quickly, include trademarks, patents, and copyrights that cannot be touched but have value to the business.

They are distinguished from current liabilities and accounts receivable, which represent money owed by customers and are also current assets, not long-lived assets used in operations.