Land and Building is NOT categorized as a liability because it is a resource/s that is owned businesses, not owes. Specifically, it is categorized as a non-current asset as its value is can be used more than the normal operating cycle of a business.
To further understand why Land and Building is an asset, just continue reading.Assets
In accounting, assets are the resources that a company owns and has monetary value.Two types of asset:Current asset - assets that are usable or convertible to cash within a year or operating cycle of a business.Non-current asset - assets that can't be used or converted to cash within a year or operating cycle of a business.Examples of current asset:Cash and cash -on- of non-current asset:LandEquipment/MachinesIntangible assetsLiabilities
In accounting, liabilities are the resources that a company owes to another business or people.Two types of liabilities:Current liabilities - accountabilities that must be paid or dealt within a year or operating cycle of a business.Non-current liabilities - accountabilities that must be paid but not within a year or operating cycle of a business.Examples of current liabilities:Accounts PayableNotes PayableUnearned RevenuesExamples of non-current liabilities:Mortgage PayableBonds Payable
The correct answer among the listed choices is letter b. Other Assets normally falls under the category of non-current assets since these assets not included in the current assets. Therefore, other assets will form part of non-current assets since these are long-term assets and not readily convertible to cash.ASSETS
In accounting, assets are any resources with value owned by the business, company, entity or person. These are legally owned by the business or entity. Assets have two categories, these are:Current AssetsNon-current Assets1. Current Assets
-these are assets that can be readily convertible to cash in a normal operating cycle of a business. Normal operating cycle is within 1 year.Some Examples of Current AssetsCash and cash equivalentsAccounts ExpensesMarketable Securities/ Short-term Investments2. Non-current Assets
-these are long-term assets or long-term investments that have a longer useful life that is usually more than 1 year. Not easily convertible to cash.Some Examples of Non-Current AssetsLandProperty, Plant and EquipmentTrademarksLong-term InvestmentsGoodwillOther Assets
All fixed assets and intangible assets fall under the category of non-current assets.
Further related topics about assets and liabilities
What is the opposite of assets
For related topics about fundamental accounting equation