Assets are defined as the economic resources acquired by the business in order to benefit from them in the future. In fact, there is an expectation for the businesses to use the assets in their operations. Some of these assets can be converted into cash, sold, collected and consumed within one year or operation cycle which is shorter but some of the assets will be used in operations for more than a year. The first group of assets are called current assets whereas the latter is called non-current assets (long-term assets). Non-current assets are the assets that are acquired to use in the operations of the business for several years. Besides these assets, receivables that have due dates of more than one year will also be reported under non-current assets. Property, Plant and Equipment generally hold the largest portion in noncurrent assets. As can also be understood from the information given, “The assets that will be used in operations for more than a year.” and  “Receivables that have due dates of more than one year” can be recognized as non-current assets, so the correct answer is C.

“The assets that can be converted into cash, sold, collected and consumed within one year or operation cycle which is shorter” are called currents assets. “A factory building rented to use in the operations.” can not be reported under assets. When the business rents a building to use in the operations, it cannot be recognized as an asset because the business doesn’t have full control on building. For example, the business cannot sell the building to anyone.. But there is one exception at this point. Leasing transactions provides companies use the property, plant and equipment assets within a rental agreement. At the end of the agreement the user company called as “lessee” takes over the property of the asset from the owner (lessor) company. During the rental period, lessee makes the rental payments. Though a leasing transaction seems as if it is a rental transaction, because the ownership of the asset is handed over to the user company, according to the substance over legal form concept of accounting. The legal form of this transaction is a rental transaction but as the asset is going to be taken over from the owner at the end of the rental agreement, economic substance of the transaction steps forward and the economic resource acquired by a leasing transaction recognized as an asset.