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Classify each of the investments in assets as either permanent or​ temporary:

a. A seasonal increase in a card shop's inventory of Valentine cards.
b. The acquisition of a new forklift truck that is expected to have a useful life of five years.
c. An increase in accounts receivable resulting from an expansion in the film s customer base.

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ogorwyne

Answer:

1. A is temporary

2. B is permanent

3. C is temporary

Explanation:

1. A is temporary because these Valentine's day card are sold seasonally. That is at a particular time of the year. It's inventory is not for a permanent basis or for a long period of time.

2. Acquiring a new forklift is a permanent inventory because the equipment will stay in the company for a long period of time, for as long as it continues to serve the purpose for which it was acquired. This makes it a life asset.

3. The Increase in account receivable do due to expansion in customer base is for a short term due to goods sold on credit therefore they are temporary.

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