NOCTI Accounting Foundations Practice Test

Long-term assets are resources a business uses for more than one year and not expected to be converted to cash within the near term. They provide value over time, often through ongoing operations, and are typically depreciated or amortized.

Buildings fit this description because they’re used in daily operations for many years and aren’t normally sold within a year. The other options are current assets since they’re expected to be converted to cash or used up within a year: cash is already cash, accounts receivable will be collected soon, and inventory will be sold in the near term.