In financial statements used by chemical companies, which of the following is not considered a current asset (i.e., not expected to be converted to cash within one operating cycle)?

Introduction / Context:
Classifying assets correctly is essential for liquidity analysis and working capital management in process industries. Current assets typically convert to cash within one operating cycle (often one year), while non-current (fixed) assets are used over several years to produce goods and services.

Given Data / Assumptions:

• Operating cycle is approximately one year.
• We consider typical line items on a chemical company’s balance sheet.
• Equipment refers to long-lived plant items like reactors, heat exchangers, and pumps.

Concept / Approach:
Current assets include cash and near-cash items: inventories (raw materials, WIP, finished goods) and marketable securities. These are expected to be sold, used, or converted into cash within the operating cycle. In contrast, plant equipment provides productive capacity for many years and is capitalized and depreciated; hence it is a fixed asset (property, plant, and equipment), not a current asset.

Step-by-Step Solution:
Identify items commonly classified as current assets: inventories and marketable securities qualify.Recognize the nature of chemical equipment: long-lived, depreciated, not intended for sale in normal operations.Therefore, “Chemical equipments” is not a current asset.

Verification / Alternative check:
Review of standard accounting practice shows equipment listed under property, plant, and equipment (PP&E) on the balance sheet and not within working capital items.

Why Other Options Are Wrong:
Inventories: Current asset by definition.Marketable securities: Short-term investments easily convertible to cash.None of these: Incorrect because there is a valid non-current choice.

Common Pitfalls:

• Confusing spare parts inventory (current asset) with installed equipment (fixed asset).
• Assuming high value implies non-current; it is the liquidity, not ticket size, that matters.

Final Answer:
Chemical equipments