Which of the following is considered a long-term asset?

A long-term asset is defined as a resource that is expected to provide economic benefits to a business for more than one year. Property, plant, and equipment, which includes assets such as buildings, machinery, and vehicles, fits this definition perfectly as these assets are utilized in the operations of the business over an extended period of time. They are not intended for immediate resale but are essential for production and operational activities.

In contrast, accounts receivable and inventory are classified as current assets since they are expected to be converted into cash or sold within a year. Cash equivalents also belong to the current asset category because they are short-term investments that can quickly be converted to cash. Therefore, property, plant, and equipment stands out as the only option that meets the criteria of being a long-term asset.