An example of a long-term asset would be?

A long-term asset refers to an asset that is expected to provide economic benefits for a period longer than one year. In this context, owning land exemplifies a long-term asset because it typically is not intended for immediate sale and remains a valuable resource for the business over extended periods. Land can appreciate in value and is often used for operations or future development, further contributing to its classification as a long-term asset.

In contrast, cash in hand and accounts receivable are considered current assets. Cash is readily available for use, and accounts receivable represent amounts expected to be collected within a year. Similarly, inventory is also a current asset since it is intended for sale in the short term, typically within the business cycle. Therefore, land stands out as the only option that aligns with the definition of a long-term asset due to its lasting value and utility for the business.