Investment Banking Technical Interview Practice Test 2025 – Comprehensive Prep

Question: 1 / 400

Which two categories do assets fall into?

Operating and Non-operating

Current and Non-current

Assets are classified into two primary categories based on their liquidity and timeframe for conversion into cash: Current and Non-current. Current assets are those expected to be converted into cash or used up within one year, such as cash, accounts receivable, and inventory. They are vital for daily operations and meeting short-term obligations.

Non-current assets, on the other hand, are long-term investments that are not expected to be converted into cash within the next year. This category includes property, plant, and equipment (PP&E), intangible assets like patents, and long-term investments. The distinction is essential for financial reporting, as it helps stakeholders assess the company's liquidity and operational efficiency.

Distinguishing assets into these two categories is crucial for understanding a company's financial health and ensuring appropriate financial management and forecasting.

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Fixed and Variable

Tangible and Intangible

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