Certified Professional Contract Manager (CPCM) Practice Exam

Long-term assets are characterized as those not expected to be converted into cash or consumed within one year. This definition encompasses a variety of asset types, including property, plant, equipment, intangible assets, and long-term investments. The distinguishing feature is the duration of their use or liquidity; these assets typically serve a purpose over a longer time frame, contributing to a business’s operations and financial stability beyond the short term.

In contrast to the other descriptions, assets that can be turned into cash immediately are classified as current assets, not long-term. The option regarding market value doesn't accurately reflect the concept of long-term assets since many long-term assets can have significant market value despite not being readily convertible to cash. Furthermore, while many long-term assets can indeed be tangible (like machinery and buildings), this characteristic is not universally applicable, as intangible assets (like patents and trademarks) are also considered long-term. Thus, option B clearly defines long-term assets by their usage duration, making it the most accurate choice here.