Which of the following statements is true about long-term assets?

Long-term assets are defined as resources that a company intends to use for more than one year in order to generate revenue and facilitate operations. This encompasses a wide range of asset types, including property, plant, equipment, and intangible assets like patents, that are not expected to be sold within the normal operating cycle of the business.

The concept of long-term assets is critical in financial accounting and reporting because it reflects the company’s investment in resources that support its ability to earn income over an extended period. Recognizing that these assets are utilized continuously rather than being quickly convertible to cash distinguishes them from current assets, which are generally expected to be liquidated or consumed within a year.

In contrast, the other statements misrepresent the characteristics of long-term assets. Long-term assets are not primarily characterized by liquidity, as liquidity pertains to how quickly an asset can be converted to cash. They can be sold, but that isn't their primary function in operations. Lastly, long-term assets can indeed include tangible as well as intangible assets, negating the notion that they cannot comprise tangible assets.